Dear AVCAL Colleague,

Government promises review of VCLP Legislation

The Minister for Industry, Tourism & Resources, the Hon Ian Macfarlane, MP has announced that the government will review the operation of the VCLP regime if re-elected this Saturday.

The announcement, which was made last Thursday at AVCAL’s 11th annual conference, will provide the industry with an opportunity to present concerns expressed by the influential US based Institutional Limited Partners Association.

While the VCLP structure is very similar to that used in the US and Europe, Australia is the only jurisdiction with investment restrictions, making it difficult for investors to get spread across stage, sector and geography when they invest through a VCLP.

By way of giving credit where it is due, during the last three years, the Federal Government has devoted a lot of time to getting the VCLP regime implemented, including sorting out complex issues associated with State Partnership Acts.

We are therefore very grateful to the government for promising to review the regime after the election, in the sure knowledge that additional direct foreign investment through VCLPs will increase our productivity growth, boost real GDP growth, and mitigate the long-term impact of the ageing demographic.