- New Attribution Managed Investment Trust regime
The package of Bills introducing the new Attribution Managed Investment Trust (AMIT) regime and containing several amendments to the existing trust rules (notably the repeal of the corporate unit trust provisions and amending the public trading trust provisions so they are not triggered by superannuation funds holding units) received Royal Assent on 5 May 2016.
The package of Bills comprised:
- Income Tax (Attribution Managed Investment Trusts-Offsets) Bill 2016 - as Act No 48.
- Income Tax Rates Amendment (Managed Investment Trusts) Bill 2016 - as Act No 49.
- Medicare Levy Amendment (Attribution Managed Investment Trusts) Bill 2016 - as Act No 50.
- Tax Laws Amendment (New Tax System for Managed Investment Trusts) Bill 2016 - as Act No 53.
Following the Bills receiving Royal Assent, the ATO has released 12 updated, and one new, Law Companion Guidelines (‘LCGs’) relating to the AMITs.
As the last piece of legislation to be passed during this government’s current term, it represents a favourable tax regime for the funds management sector, encourages inflows of foreign capital and enhances the competitiveness of the Australian managed funds. All fund managers should review the impacts to their business and adjust accordingly.
Trusts that qualify as AMITs will need to consider whether they elect to apply the new AMIT regime from 1 July 2015 or from 1 July 2016.
In addition, we note Australian managed funds may also benefit from the Asia Region Funds Passport. This will come into effect on 30 June 2016 and will provide a multilaterally agreed framework to facilitate the cross-border marketing of managed funds between the participating countries.