- 02/03/2023
- Posted by: Darren Lelliott
- Category: Tax Incentive Program
No Comments
R&D Tax Incentive Scheme;
Personal Direct Investment Incentives
The Venture Capital Program
Matrix of Programs
Optimised Incentive: Self-Managed VC Funds
In week 5 we provide a matix comparing the available programs, their benefits and disadvantages.
Matrix of Programs
The following is a simplified matrix comparing the differences of the incentive programs.
In short, the matrix is not meant to state that one program or method of investment is better than any other. The best and most appropriate method of investment needs to be determined by the circumstances of both the investment and the investor.
When you venture needs assistance to navigate tax incentivised investment programs Lellco is here to help.
| Direct Personal Investment | Angel Investment Tax Incentive Scheme | Venture Capital Funds | The Ideal Compromise Fund | |
| Investment Selection | Investor selected | Investor selected | Manager | Investor & Manager selected |
| Investment management | Investor | Investor | Manager | Investor & Manager selected |
| Investment range | Unlimited | Very limited | Within broad range | Within broad range |
| Investee types | Venture (speculative) & Enterprise (lower risk) | Venture (speculative) | Venture (speculative) | Venture (speculative) & Enterprise (lower risk) |
| Min & max investment hold period | N/A | 12 months – 10 years | 12 months – 15 years | 12 months – 15 years |
| Max Investee Entry value | N/A | Not prescribed but ESIC test sets a very low valuation | $50m | $50m |
| Investment Divestment | Nil | Nil | tax benefits cease at $250m value | tax benefits cease at $250m value |
| Income Tax | Yes | Payable | Exempt | Exempt |
| Capital Gain | Yes | Exempt | Exempt | Exempt |
| Tax Offset | Nil | 20% of invested capital capped at $200,000 p.a. | 10% of invested capital | 10% of invested capital |
| Capital Loss | Yes | Disregarded | Exempt | Capital Loss Strategy |