What are collective investment vehicles
Collective investment vehicles (CIVs) are structures that support large scale, pooled investments, where investors combine their financial resources for the purpose of acquiring passive investment assets. These schemes are managed by a responsible entity, often referred to as a fund manager.
Assets acquired by these investment schemes typically include investments in land for deriving rent, trading in secured or unsecured loans, bonds, stocks, shares and other financial instruments.
CIVs include:
- Managed investment trusts (MITs)
- Attribution managed investment trusts (AMITs)
- Corporate collective investment vehicles (CCIVs)
About our program of work
The Private capital program has responsibility over CIVs. This program is funded by the Tax Avoidance Taskforce and seeks to give the community confidence that investment structures using private capital, including those utilising CIVs, are paying the right amount of tax.
Our work aligns with the following focus areas within the public and multinational business three-tier model:
- domestic tax positions and structures
- claiming other tax concessions or rates
- eligibility for managed investment trust (MIT) status
- cross-border investment structures
- structuring through vehicles or arrangements
- accessing MIT concessions
- actions that support tax compliance
- governance
- governance over third-party data.
The way we asses risk, however, isn't limited to the above tier-three focus areas and can cover any other focus areas within the three-tier model, where applicable. While the three-tier model covers the key drivers of tax performance, there may be times where potential non-compliance is detected but isn't covered by the model. We may choose to investigate the matter even though the matter may not currently be included in the model.
Our approach to CIVs
Our approach to CIVs consists of various risk-based reviews that focus on key stages of the investment lifecycle.
Pre-acquisition
When Australian investments require foreign investment approval from the Treasurer (the decision maker), we support the Treasurer:
- through a dedicated team which is consulted on foreign investment proposals
- considering all tax risks associated with the proposed transaction through a CIV perspective
- recommending conditions or requesting further information to mitigate these risks.
For further information, refer to foreigninvestment.gov.auExternal Link, guidance note 12.
Holding period
During this period, we focus on:
- monitoring and acting upon risks we identified during the pre-acquisition lifecycle stage
- reviewing lodgments and identifying risks arising in the CIV population, including MIT and AMIT eligibility
- supporting the delivery of combined assurance reviews for CIVs under the Top 1000 program
- providing support to relevant industry bodies and advisers on technical and administrative issues
- providing assistance with reporting obligations, including the annual investment income report (AIIR), the attribution managed investment trust member annual (AMMA) statement and the standard distribution statement (SDS).
Pre-exit and exit
Foreign investment conditions may require engagement with us before certain CIV divestments. If we've identified exit-related risks during one of our reviews, we:
- will request engagement prior to divestment
- may seek security guarantees to protect Australian tax revenues, if required.
We may also conduct risk reviews for transactions and disposals where there is a return to CIVs who have accessed tax concessions.
Published advice and guidance
You can refer to these public advice and guidance products to understand our approach to CIVs.
- Taxpayer Alert TA 2025/1 Managed investment trusts: restructures to access the managed investment trust withholding regime
- Law Companion Ruling LCR 2023/D1 The corporate collective investment vehicle regime
- Law Companion Ruling LCR 2020/2 Non-concessional MIT income
- Law Companion Ruling LCR 2016/4 Attribution Managed Investment Trusts: 'carry-forward trust component deficit'
- Law Companion Ruling LCR 2015/15 Managed Investment Trusts: the non-arm's length income rule in sections 275-605, 275-610 and 275-615 of the Income Tax Assessment Act 1997
- Law Companion Ruling LCR 2015/13 Attribution Managed Investment Trusts: withholding in respect of 'fund payments'
- Law Companion Ruling LCR 2015/12 Attribution Managed Investment Trusts: dividend, interest and royalty withholding
- Law Companion Ruling LCR 2015/11 Attribution Managed Investment Trusts: annual cost base adjustments for units in an AMIT and associated transitional rules
- Law Companion Ruling LCR 2015/10 Attribution Managed Investment Trusts: administrative penalties for recklessness or intentional disregard of the tax law – section 288-115
- Law Companion Ruling LCR 2015/7 Attribution Managed Investment Trusts: attribution on a 'fair and reasonable' basis
- Law Companion Ruling LCR 2015/6 Attribution Managed Investment Trusts: character flow through for AMITs
- Law Companion Ruling LCR 2015/5 Attribution Managed Investment Trusts: choice to treat separate classes as separate AMITs
- Law Companion Ruling LCR 2015/4 Attribution Managed Investment Trusts: 'clearly defined rights'.
Support on CIV issues
If you need support on CIV issues, see:
- collective investment vehicles
- early engagement for advice
- applying for a private ruling
- Annual investment income report (AIIR) lodgment.
For any specific issues not addressed elsewhere contact PGprivateequity@ato.gov.au.