(a) if a beneficiary of a trust estate or a partner in a partnership is a foreign entity, the trust estate or partnership has a foreign entity participant; and

if a trust estate or partnership has a foreign entity participant (including through a previous operation of this paragraph):

(i) a trust of which the trust estate or partnership is a beneficiary also has a foreign entity participant; and

(ii) a partnership in which the trust estate or partnership is a partner also has a foreign entity participant.

both of the following conditions are satisfied:

a trust estate or partnership makes a supply to an entity;

that entity would be an Australian customer of the trust estate or partnership if the trust estate or partnership were a foreign entity; and

because of the supply, an amount of ordinary income, or statutory income, is included in the assessable income of the trust estate or partnership (as worked out for the purposes of working out its net income for a year of income); and

the trust estate or partnership has a foreign entity participant at any time in that year of income; and

any of the following conditions are satisfied at the time the supply is made:

(i) the trust estate or partnership is connected with (within the meaning of the Income Tax Assessment Act 1997) a foreign entity;

the trust estate or partnership would be an affiliate (within the meaning of that Act) of a foreign entity if the trust estate or partnership were an individual or a company;

the trust estate or partnership and a foreign entity are members of the same global group.

treat the foreign entity mentioned in paragraph (7)(d) as having made the supply; and

treat the entity mentioned in subparagraph (7)(a)(ii) as being an Australian customer of the foreign entity; and

treat the foreign entity as having derived the ordinary income, or statutory income, from the supply.

the entity must be a CGT small business entity or a partner in a partnership that is a CGT small business entity, or the net value of assets that the entity and related entities own must not exceed $6,000,000;

the CGT asset must be an active asset;

if the asset is a share or interest in a trust, there must be a CGT concession stakeholder just before the CGT event, and the entity claiming the concession must be a CGT concession stakeholder in the company or trust or CGT concession stakeholders in the company or trust must have a small business participation percentage in the entity of at least 90%.

the entity must be a CGT small business entity or a partner in a partnership that is a CGT small business entity, or the net value of assets that the entity and related entities own must not exceed $6,000,000; and

the CGT asset must be an active asset.

the CGT asset would still satisfy the active asset test (see section 152-35) if the assumptions in subsection (2A) were made;

if you do not satisfy the maximum net asset value test (see section 152-15)—you are carrying on a *business just before the *CGT event;

either:

the object entity would be a *CGT small business entity for the income year; or

the object entity would satisfy the maximum net asset value test (see section 152-15);

the only CGT assets or *annual turnovers considered were those of the object entity, each affiliate of the object entity, and each entity controlled by the object entity in a way described in section 328-125;

each reference in section 328-125 to 40% were a reference to 20%;

no determination under subsection 328-125(6) were in force;

just before the CGT event, either:

you are a *CGT concession stakeholder in the object entity; or

CGT concession stakeholders in the object entity together have a *small business participation percentage in you of at least 90%.

an asset of a company or trust is covered by neither:

subparagraph 152-40(3)(b)(ii) (about financial instruments); nor

subparagraph 152-40(3)(b)(iii) (about cash);

paragraph 152-40(3)(b) does not cover an asset that:

(i) is a share in a company, or an interest in a trust, (the later entity); and

is held at the test time by the object entity directly or indirectly (through one or more interposed entities); and

subparagraph 152-40(3)(b)(i) also covers each asset that:

is held at the test time by a later entity covered by subsection (2B); and

is, for that later entity, an asset of a kind referred to in subparagraph 152-40(3)(b)(i), (ii) or (iii), as modified by paragraphs (a) and (b) of this subsection; and

subject to paragraph (b) of this subsection, all of the assets of the object entity at the test time included all of the assets of each later entity at the test time; and

for the purposes of paragraph 152-40(3)(b), the *market value at the test time of an asset held by a later entity were the product of:

the asset’s market value, apart from this paragraph, at the test time; and

the object entity’s *small business participation percentage in the later entity at the test time.

at the test time:

your *small business participation percentage in the later entity is at least 20%; or

you are a *CGT concession stakeholder of the later entity; and

either:

the later entity would be a *CGT small business entity for the income year that includes the test time; or

the later entity would satisfy the maximum net asset value test (see section 152-15) for a notional CGT event taken to have happened at the test time;

the only *CGT assets or *annual turnovers considered were those of the later entity and of the entities referred to in subparagraph (2)(c)(iii);

each reference in section 328-125 to 40% were a reference to 20%;

no determination under subsection 328-125(6) were in force.

developing technology for use in relation to an activity referred to in paragraph (13)(b), (c) or (e);

an activity that is ancillary or incidental to the activity of developing technology referred to in paragraph (a) of this subsection;

an activity referred to in paragraph (13)(b), (c) or (e) that is the subject of a finding in force under section 118-432 at the time the investment is made.

developing technology for use in relation to an activity referred to in paragraph (14)(b), (c) or (e);

an activity that is ancillary or incidental to the activity of developing technology referred to in paragraph (a) of this subsection;

an activity referred to in paragraph (14)(b), (c) or (e) that is the subject of a finding in force under section 118-432 at the time the investment is made.

finding that a specified activity is a substantially novel application of one or more technologies; or

refusing to make such a finding about a specified activity.

examine the operation of the tax concession regime for:

investments made through a *VCLP, *ESVCLP or *AFOF; and

(ii) investments made directly by foreign residents registered under Part 3 of the Venture Capital Act 2002; and

be conducted by the Department and Innovation and Science Australia; and

make provision for public consultation.