Foreign Pension Funds - access to managed investment trust (MIT) withholding tax regime

On 6 November 2013, the then Assistant Treasurer confirmed that the government will proceed with the proposed amendments (previously announced on 13 February 2013 by the former Assistant Treasurer) to allow foreign pension funds to access the MIT withholding tax regime.

Fund payments made by a MIT are subject to a final withholding tax rate of 15 per cent where the payments are made to a resident of a country with an effective exchange of information agreement with Australia. Fund payments made to residents of non-exchange of information countries are subject to a final tax withholding rate of 30 per cent.

This measure will ensure that the MIT withholding tax regime operates as intended and provide certainty for industry and investors.

The amendment received royal assent on 12 December 2014 and applies retrospectively from 1 July 2008.

Media release

For more information, refer to:

Legislation and supporting materials

The following legislation received royal assent on 12 December 2014:

    Last modified: 14 Jan 2015QC 40399