PDF Investment Tax Effectiveness

PDF’s are Australian companies registered under The Pooled Development Funds Act 1992, as amended and are regulated by Innovation Australia. The main features are:

1.    To invest patient equity capital in eligible Australian companies:

a)    With up to $50m in Assets, and

b)    Excluding retail or property.

2.    Competitive tax treatment

a)    PDF’s pay a reduced rate of corporation tax (15%, instead of 30%), and

b)   Shareholders benefits include Dividends that are either fully franked or tax exempt; and the CGT rate on capital profits is ZERO.