This article examines and compares some of the recent venture capital reforms that have been implemented, or are in the process of being implemented, in Australia and New Zealand. The article focuses on the design of these countries' tax expenditure schemes and the investment vehicles used in them. The article first discusses the importance of small and medium-sized enterprises and their need for venture capital investment. The article then considers Australia's venture capital tax expenditure schemes, including the proposed new "early stage venture capital limited partnership" scheme. The article also outlines the venture capital reforms in New Zealand and concludes with some observations about the direction that Australia and New Zealand have taken in relation to their schemes.