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A tax system for managed investment trusts

Last updated 26 June 2023

The Tax Laws Amendment (New Tax System for Managed Investment Trusts) Act 2016 allows an eligible managed investment trust (MIT) to choose to apply the AMIT regime. The choice to apply it and become an AMIT is irrevocable.

The AMIT regime includes the following features:

  • AMITs apply an attribution method of taxation in lieu of the present entitlement to income method.
  • AMITs may carry forward under- and over-attribution amounts into a later year, generally without adverse taxation consequences.
  • AMITs are deemed to be fixed trusts.
  • Adjustments may be made to decrease or increase the cost base of members' unit holdings in an AMIT to eliminate double taxation that may otherwise arise.
  • AMITs (and other MITs) are subject to an arm’s length rule that aims to ensure that related entities undertake transactions between one another in a manner that reflects commercial dealings.

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