Application and transitional provisions for the new tax system for MITs
With the introduction of the new tax system for managed investment trusts (MITs), there are a number of changes to the rules for MITs that will require time to implement. These do not necessarily take effect at the same time the MIT elects into the new AMIT regime. Application and transitional provisions have been put in place to allow for the changes not made at commencement.
The amendments to introduce a new tax system for MITs apply to income years starting on or after 1 July 2016. MITs will be able to make a choice to apply the new tax system for an income year that starts on or after 1 July 2015.
Extension of widely held requirements
The amendments, which extend the list of entities qualifying as specified widely held entities (for the purpose of the widely held requirements that must be satisfied for a trust to qualify as a MIT), apply from income years starting on or after 1 July 2014.
Division 6B and 6C
The amendments that repeal the corporate unit trust rules in Division 6B and modify the operation of the 20% tracing rule for public trading trusts in Division 6C apply to income years starting on or after 1 July 2016.