In media release No 2011/121, issued 16 August 2011, the Assistant Treasurer and Minister for Financial Services and Superannuation, Bill Shorten, announced the release for public consulatation of draft legislation relating to Australia's investment manager regime.
The amendments to income tax law will clarify how certain income of foreign funds, for 2010-11 and prior income years, are taxed. It will also clarify the treatment of certain investments of foreign funds, where the returns or gains are treated as being attributable to a permanent establishment in Australia.
MrShorten, said "The proposed changes in tax treatment provide certainty for businesses investing through Australian intermediaries."
As part of the 2011-12 Budget, the government asked the Board of Taxation to bring forward its review of the full funds management Investment Management Regime. The Board of Taxation will now report to the Government by 30 September 2011 in relation to this issue.
Consultation on the draft legislation closes on Tuesday 30 August 2011.