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  • Removing the capital gains discount at the trust level for Managed Investment Trusts and Attribution MITs

    On 8 May 2018 the Government announced an integrity measure to prevent Managed Investment Trusts (MITs) and Attribution MITs (AMITs) from applying the 50 per cent capital gains discount at the trust level.

    On 17 December 2018, as part of the Mid-Year Economic and Fiscal Outlook 2018–19 (MYEFO), the Government will revise the start date from 1 July 2019 to 1 July 2020. This measure will apply to payments made from 1 July 2020.

    This will ensure that MITs and AMITs operate as genuine flow-through tax vehicles, so that income is taxed in the hands of investors, as if they had invested directly. This measure will prevent beneficiaries that are not entitled to the CGT discount in their own right from getting a benefit from the CGT discount being applied at the trust level.

    Under the measure, MITs and AMITs that derive a capital gain will still be able to distribute this income as a capital gain that can be discounted in the hands of the beneficiary.

    Legislation and supporting material

    Legislation is being developed for this measure.

    More information

      Last modified: 30 Jan 2019QC 56190