Strategic Elements is officially registered under the Australian Federal Government’s Pooled Development Fund (PDF) program.

What is the Pooled Development Fund Program?

The aim of the Pooled Development Fund Program is to increase the supply of capital to Australian SME’s. PDF’s are venture capital funds registered under the PDF Act that deliver tax concessions to shareholders under the Income Tax Assessments Acts.

Benefits for Shareholders

Shareholders of a PDF are entitled to concessionary treatment for capital gains derived from their holding. Capital gains made by resident shareholders are not taxable under the Australian taxation system. Additionally, capital losses are not deductable. Unfranked dividends received by resident shareholders are also not taxable under the Australian taxation system.

Benefits for our Company

The PDF is also entitled to tax benefits. Income and capital gains of PDF’s are sheltered at concessional tax rates. Essentially, PDF’s are taxed in accordance with income tax rates of 15% on income and gains from investment in SME’s, less any allowable deductions on the PDF may incur, and a rate of 25% on other income and gains. In addition to the concessional PDF corporate tax rates, PDF’s credit their franking accounts for tax paid at the general rate of 30%, thus enabling us to pass on greater franking benefits to our shareholders.

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