The Assistant Treasurer, Chris Bowen MP, today announced the release of a Treasury discussion paper on proposed changes to the taxation treatment of disposals of investments by Managed Investments Trusts (MITs).
The discussion paper is seeking comment on the design and implementation details of the changes to give effect to the Government's 2009-10 Budget decision to allow MITs to elect capital account treatment for gains and losses on disposal of their investments. The changes are to have effect from the 2008-09 and later income years.
"The changes will provide more taxation certainty for MITs and their investors that elect into the regime," Mr Bowen said.
"The measure is an important part of the Government's reforms to promote Australia as a financial hub.
"In taking this decision in the Budget, the Government took into account interim advice from the Board of Taxation (BOT) on this matter. However, there were some aspects that the BOT undertook to examine further as part of the BOT's ongoing review of MITs. I have therefore asked the BOT to bring forward its final advice on legislative design issues raised in the Treasury discussion paper."
The Assistant Treasurer encourages interested parties to provide comments on the discussion paper by 10 July 2009.
The discussion paper is available on the Treasury website. A further round of consultation will occur on the draft legislation.