New tax system for Managed Investment Trusts

Managed Investment Trusts (MITs) have access to a new tax system, which modernises the tax rules for eligible MITs and increases certainty for investors.

The new rules enhance the international competitiveness of the Australian managed funds industry, and promote the greater export of Australia’s funds management expertise.

Eligible MITs can elect into the new rules, to attribute trust income to beneficiaries on a fair and reasonable basis, according to their ownership interests in the MIT.

An eligible MIT electing into the system is known as an Attribution MIT (AMIT).

The new tax system introduces:

  • 'unders and overs' provisions to correct variances
  • treatment of asset classes within the trust as separate AMITs
  • fixed trust treatment
  • aligning current withholding requirements to attribution.

See also:

    Last modified: 18 May 2016QC 49011