In the 2009-10 Budget, the Government announced it will allow Australian managed investment trusts (MITs), except those that are taxed like companies, to make an irrevocable election to apply the CGT regime as the primary code for taxing certain disposals of assets. This will take effect from the 2008-09 income year.
The ATO advises that it will apply the existing law in the period between the announcement and enactment of the proposed law but will not undertake specific compliance activity to enforce the existing law during this period. Once the changes become law, taxpayers should review the actions they have taken. Those taxpayers who:
- anticipated the change correctly, will need to take no further action
- followed the existing law, should seek an amendment of their returns once the law is enacted
- did not anticipate the change correctly, will need to amend their earlier assessments
For a copy of the ATO advice, go here