MITs - election to allow CGT to be the primary code for disposals of shares, units and real property
01 Jul 2010
In the 2009–10 Budget, the Government announced that it will allow eligible Australian managed investment trusts (MITs), to make an irrevocable election to apply the CGT provisions as the primary code for the taxation of gains and losses on the disposal of certain assets (primarily shares, units and real property).
Legislation to bring this measure into effect is contained in the Tax Laws Amendment (2010 Measures No 1) Act 2010 which received Royal Assent on 3 June 2010.
The ATO has now advised the administrative treatment that it will apply in relation to adjustments to returns of MITs.