In media release No 2010/136, issued 21 June 2010, the Assistant Treasurer, Senator Nick Sherry, announced the detail of amendments to the definition of a managed investment trust (MIT) which widen the scope of trusts to benefit from taxation concessions available through the capital account and withholding tax arrangements.
The new definition of a MIT will ensure a range of trusts that were previously excluded will be eligible for the MIT withholding tax regime and capital account election. Details of the new definition are included in the media release.
"The rules will ensure that appropriate integrity arrangements are in place to ensure that only genuinely widely held trusts with investment management activities substantially based in Australia in respect of their Australian assets can be recognised as MITs," the Assistant Treasurer said.
"To allow sufficient time for funds and investors to adapt to the new rules, we will also include very generous transitional arrangements."
The Assistant Treasurer made the announcement of these reforms during an address to the Property Council of Australia's Capital Markets Leaders Summit, in Canberra, ACT, on 21 June 2010.