Managed investment trusts: election into capital treatment

The following information gives an overview of the managed investment trust (MIT) capital treatment rules, including eligibility requirements and how to make an election.

If you are the trustee of a MIT this information will help you to determine whether you are eligible to make a capital treatment election.

Overview of the managed investment trust: capital treatment rules

The MIT capital treatment rules in Division 275 of the Income Tax Assessment Act 1997 (ITAA 1997) allow the trustee of an eligible MIT to make an irrevocable election to apply only the capital gains tax (CGT) provisions for the taxation of gains and losses on disposal of eligible assets. For the purposes of the MIT capital treatment rules, a disposal also includes ceasing to own or otherwise realising the asset.

These rules apply to CGT events that happen on or after the start of the 2008-09 income year.