The Government has today released consultation exposure draft legislation and explanatory memorandum for "Clean Building Managed Investment Trusts".
From 1 July 2012, managed investment trusts that only hold newly constructed energy efficient commercial buildings will be eligible for a 10 per cent withholding tax rate.
The concession will be available in relation to office buildings that have obtained a 5-Star Green Star rating or a predicted 5.5 star National Australian Built Environment Rating System rating, and retail centres and hotel accommodation that meet equivalent standards.
The eligibility criteria will be reviewed after 3 years to ensure that qualifying projects produce above average level of energy efficiency.
The new regime will apply where construction of the building commences on or after 1 July 2012.
The exposure draft legislation and explanatory material can be found on the Treasury website. Consultation will close on 13 September 2012.