Show download pdf controls
  • Eligibility requirements

    A managed investment trust (MIT) is a publicly-held and commercially-operated collective investment trust that invests in primarily passive income activities. A trust qualifies as a MIT if all of the following apply for the income year in which it operates:

    If temporary circumstances beyond the control of the trustee exist, the trust may continue to be treated as a MIT where it is fair and reasonable to do so. These requirements apply to all MITs, regardless of whether they opt into the attribution regime as AMITs.

    Why there are eligibility requirements

    The eligibility requirements are designed to ensure that a MIT is a genuine collective investment vehicle, and to limit the ability of foreign residents to adopt trust structures to access concessional withholding tax rates.

    Under the MIT withholding tax regime, foreign investors are eligible for a reduced rate of withholding tax on fund payments from MITs if they are a resident of a country with which Australia has an effective exchange of information treaty.

    The 'Australian management' requirement in the MIT definition is designed to enhance the competitiveness of the Australian managed funds industry.

    See also  

      Last modified: 26 Oct 2021QC 47436