Govt refines MIT regime ahead of election
In one of its final acts before going into pre-election caretaker mode, the Federal Government has announced further changes to the Managed Investment Trust (MIT) regulatory regime which it claims will help reduce compliance costs.
The changes were announced by Assistant Treasurer, David Bradbury, who also committed to further consultation with the industry on the issue after the election.
The changes announced by Bradbury relate to the under- or over-attribution of net income that is in excess of the so-called "de minimis threshold", as well as the application of the proposed arm's length rule intended to prevent the circumvention of the eligible investment business (EIB) rules and protect the corporate tax base.
Bradbury said the changes addressed concerns that the proposed tax treatment of the under- or over-attribution of net income might be unreasonable under certain circumstances when compared to the tax profile of many MIT investors, as well as concerns that the proposed arm's length rule unnecessarily applied to certain services provided to a MIT by a related entity.
He said that to address these issues, the regulatory environment would be changed to allow to be carried forward an under- or over-attribution of net income in excess of the de minimis threshold that is not caused intentionally by the trustee, subject to certain integrity measures; and carve out certain services from the application of the proposed arm's length rule between a MIT and an associate of the MIT.
The minister said there would be ongoing consultation in relation to the application of the MIT Withholding Tax Regime.
Recommended for you
As ASIC chair Joe Longo pushes firms to prepare for the upcoming mandatory climate disclosure regime, what skills are necessary if firms are looking to expand their ESG teams?
First Sentier Investors has announced it will close four of its Australian investment teams amid a simplification of the business, with $14 billion expected to be returned to investors.
Over 90 finalists have been chosen to compete at the 36th annual Fund Manager of the Year Awards, to be held in Sydney on 13 June.
Clients may be asking their adviser whether there is still value in the US technology names after their rally, but Fidelity International’s Lukasz de Pourbaix believes they can still offer upside.