Upcoming Mallesons seminarsAll trustees and managers of managed investment trusts as well as investors in those trusts.
What do you need to do?Review the issues and suggested proposals for reform noted by Treasury, and make any submissions prior to 10 July 2009.
Clint Harding
Senior Associate
Betsy-Ann Howe
Partner
T +61 2 9296 2408
Andrew Clements
Partner
T +61 3 9643 4089
Sydney
John Edstein
Betsy-Ann Howe
John King
Michelle Levy
Richard Snowden
Melbourne
Andrew Clements
The Treasury has today released a Discussion Paper setting out further details of the long awaited changes to be made to the taxation of gains and losses on the disposal of certain investments by managed investment trusts (MITs). These changes were announced by the Government as part of the Federal Budget on 12 May 2009.
Central to the Budget announcement was the concept of an irrevocable election to be made by MITs to allow gains and losses on disposal of certain investments to be dealt with under the capital gains tax regime.
The Discussion Paper sets out the key design features of the new measure and raises further issues that may be relevant to give effect to the new measure. The Discussion Paper considers the following:
- What is an ‘eligible Australian MIT’?
- What is an ‘eligible asset’?
- What will constitute an ‘eligible disposal’?
- What integrity and other rules will be necessary and/or appropriate to ensure the new measures operate as intended?
- When will the new measures take effect and what steps can be taken to provide certainty to taxpayers in respect of prior year trust returns?
The Treasury has invited interested parties to make written submissions on the issues raised in the Discussion Paper and the overall design of the new measure by Friday 10 July 2009.
The Discussion Paper can be accessed here.
For more information please contact the Mallesons Tax Team.