In media release No 2012/012, issued 7 March 2012, the Minister for Employment and Workplace Relations and Minister for Financial Services and Superannuation, Bill Shorten, announced the release of a second exposure draft of legislation implementing the first stage of the Investment Manager Regime (IMR). The first exposure draft was released on 16 August 2011.
The first stage of the IMR has two objectives: firstly, to alleviate the impact of US accounting standard "FIN 48"; and secondly to address the situation where a foreign managed fund is taken to have a permanent establishment in Australia because of its use of an Australian advisor, potentially resulting in some or all of the income of the fund being subject to Australian tax.
The Minister noted that the Government announced the final element of the IMR on 16 December 2011, legislation for which has not yet been drafted. Consultation on the development of this legislation will be undertaken at a later stage.
Submissions on the exposure draft legislation close on 4 April 2012.