Expanding tax incentives for venture capital schemes

In the 2026–27 Budget, the government announced that it would expand the tax incentives for venture capital schemes to help unlock patient capital for young, expanding firms.

The changes will also close the Eligible Venture Capital Investor program to new applications from 7:30pm (AEST) on 12 May 2026.  

Feedback

We are seeking feedback on whether the exposure draft law and explanatory memorandum give effect to the Budget announcement.

Background

From 1 July 2027, the government will:  

• increase the asset value thresholds for eligible investee entities from $250 million to $480 million for Venture Capital Limited Partnerships

• increase the asset value thresholds for eligible investee entities from $50 million to $80 million for Early Stage Venture Capital Limited Partnerships

• increase the maximum fund size of an Early Stage Venture Capital Limited Partnerships from $200 million to $270 million, and  

• increase the threshold at which certain Early Stage Venture Capital Limited Partnership investment returns can be fully tax exempt from $250 million to $420 million.