Investment Manager Regime - Element 3

On 6 November 2013, the Treasurer announced in a joint media release that the government would proceed with element 3 of the investment manager regime (IMR) as announced in the 2012–13 Budget by the previous government.

The IMR consists of three elements. The first two elements were legislated in 2012, providing certainty about prior income years and the treatment of conduit income.

Element 3 of the IMR extends the concession to cover direct investments in Australian assets that are of a portfolio nature. The amendments remove the portfolio restriction in respect of investments in foreign assets that are made through Australia. The amendments also make significant changes to the criteria that determine when a foreign fund is widely held and simplify the legislative mechanism for providing the IMR concession.

These amendments apply in relation to the 2015-16 and later income years. In addition, taxpayers may choose to apply some of the amendments to previous income years — the effect of this on taxpayers and other foreign investors is entirely beneficial.

Legislation and supporting material

Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill 2015 was passed by parliament on 17 June 2015 and received royal assent on 25 June 2015. You can access the legislation hereExternal Link.

Media release

More information

For more information, refer to:

    Last modified: 28 Jul 2015QC 24354