Clean building managed investment trusts

On 27 June 2012, the government amended the tax law to support investment in the construction of new energy-efficient commercial buildings.

From 1 July 2012, managed investment trusts that hold one or more newly constructed energy-efficient commercial buildings are eligible for a 10% withholding tax rate on fund payments made to foreign investors residing in countries with which Australia has effective exchange of information arrangements. 

The concession will be available in relation to office building, hotel, shopping centre, or a building with a combination of these uses. These buildings must have obtained a 5-star Green Star rating or a predicted 5.5 star NABERS (National Australian Built Environment Rating System) rating.

The new regime will apply where construction of the building commences on or after 1 July 2012.

Media release

For more information, refer to:

• Media Release 085 issued on 16 August 2012 by the Assistant Treasurer.
• Joint Media Release No.053 issued on 27 June 2012 by the Assistant Treasurer and the Parliamentary Secretary for Climate Change and Energy Efficiency.

Legislation and Supporting Materials

The following legislation received royal assent on 10 December 2012:

• Tax Laws Amendment (Clean Building Managed Investment Trust) Act 2012
• Explanatory Memorandum.