Extension of managed investment trust streaming election
The Tax Laws Amendment (2011 Measures No. 5) Act 2011 received royal assent on 29 June 2011. This Act enables streaming of franked distributions and capital gains for tax purposes, as well as introducing targeted anti-avoidance rules.
The streaming changes will only apply to a managed investment trust (MIT) or an entity treated in the same way (for the purposes of Division 275 of the ITAA 1997) if the trustee chooses to apply the streaming changes.
The Tax Laws Amendment (New Tax System for Managed Investment Trusts) Act 2016 received Royal Assent on 5 May 2016. This Act introduced new rules for MITs that apply from 1 July 2016. However, MITs can choose to apply them from the earlier start date of 1 July 2015.
As a result, it is proposed that MITs and other trusts treated as MITs will continue to be able to choose to apply the trust streaming provisions for income years up to the 2016-17 income year (after which the choice will not be available to MITs).
Legislation and supporting material
The government intends to give managed investment trusts (MITs) a further extension to choose to apply the trust streaming rules.