Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) The venture capital credit on a distribution is only significant in the hands of a relevant venture capital investor (basically a superannuation fund or other entity that deals with superannuation).
(2) That investor receives a tax offset. In most cases, this will be equal to the venture capital credit.
(3) Under section 124ZM of the
Income Tax Assessment Act 1936 , that part of the distribution that is franked
with a venture capital credit is also treated as exempt income in the hands of
the entity.