12 Aug 11 NTLG Finance & Investment Managed Investment Trust Working Group
Tax Counsel Tamera Lang ATIA, Ken Woo FTIA (Pwc) and Andrew Mills FTIA (Life) (Greenwoods & Freehills) attended the inaugural NTLG Finance & Investment Managed Investment Trust (MIT) Working Group on 11 August 2011.
The Working Group has been established to deal with issues arising from the Government’s decision to commence a new regime for MITs with a start date of 1 July 2012. The new regime itself has not yet been enacted. The legislation is currently being drafted and an exposure draft is expected to be released in mid-September, and the legislation introduced into Parliament late in the Spring 2011 sittings. Consultation on the draft legislation, as well as several policy issues, are subject to a separate stream of consultation.
The Working Group will focus its initial work ahead of the ED on the potential impact of the new regime on business IT and processing systems. Although the ATO does not usually consult ahead of enactment of legislation, the long lead times involved in implementing system changes to deal with this new regime warrant an early engagement with industry.
The discussions at the meeting mainly centred on possible changes to the Standard Distribution Statement and the flow-on impacts on the annual investment income reporting (AIIR) regime. The group also discussed possible changes to the trust tax returning, including special labels or schedules, are warranted or desirable for MITs.
The Working Group agreed to meet again shortly after the release of the ED. If you have issues that you would like raised, please contact us at Tax Policy.