02 Jul 12 MIT withholding tax Bills await Royal Assent
On 28 June 2012, Tax Laws Amendment (Managed Investment Trust Withholding Tax) Bill 2012 and the associated Income Tax (Managed Investment Trust Withholding Tax) Amendment Bill 2012 were passed by the Senate without amendment.
The Bills give effect to the increase in the managed investment trust (MIT) final withholding tax rate from 7.5% to 15%.
The Bills now await Royal Assent.
In media release No 2012/053, issued 27 June 2012, the Assistant Treasurer and Minister Assisting for Deregulation, David Bradbury, commented on the passage of the Bills. In particular, he announced that the Government has agreed to introduce subsequent legislation to support investment in the construction of new energy efficient buildings.
From 1 July 2012, managed investment trusts that only hold newly constructed energy efficient commercial buildings will be eligible for a 10% withholding tax rate.
The concession will be available in relation to office buildings that have obtained a 5-star Green Star rating or a predicted 5.5 star NABERS rating, and retail centres and non-residential accommodation that meet equivalent standards.
The new regime would apply where construction of the building commences after 1 July 2012.