Australian reforms to benefit Managed Investment Trusts 23 June 2010 The Australian Government has announced amendments to the definition of Managed Investment Trusts (MIT). These reforms will widen the scope of trusts so that investors can benefit from taxation concessions through the capital account and withholding tax arrangements. Senator Nick Sherry, the Australian Assistant Treasurer, said that amended definition of an MIT will better match widespread industry practice and more closely align to the MIT definition used across other parts of Australian tax law. He commented that the new definition will also mean that a range of trusts previously excluded will now be eligible for the MIT withholding tax regime and capital account election. "Overall, these changes will boost the competitiveness of the Australian funds management industry and enhance its ability to attract and retain foreign capital," Senator Sherry said. The relevant legislation, the Tax Laws Amendment (2010 Measures No.3) Bill 2010, will be discussed in the Australian Parliament this week. Last month, the Government announced a new $120 million tax system for Managed Investment Trusts which included significant reductions in MIT withholding tax rates, from 30 per cent to 7.5 per cent by 2010-11. More information |