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  • Foreign investors mandated reporting for fund payment notices

    On 22 June 2020, an amendment to the recent stapled structures reforms received royal assent.

    This amendment mandates the reporting on fund payment notices issued by a withholding managed investment trust (MIT), custodian or other entity of amounts which are excluded from non-concessional MIT income (NCMI). This will allow these amounts to be traced through the chain of entities below the withholding MIT.

    Without the changes, tax withholders may not have had the relevant information required at the time of the fund payment (usually quarterly) to withhold at the correct rate and to report on the fund payment notice. 

    Additionally, the MIT withholding rate has changed to 30% on fund payments attributable to NCMI.

    These changes improve the integrity of the income tax law for arrangements involving stapled structures by limiting access to tax concessions for foreign investors.

    The changes apply to notices made available on or after royal assent.

    For further information:

    See also:

    Last modified: 07 Jul 2020QC 63116