The updated draft legislation for the third and final element of the Investment Manager Regime was today released for consultation.
The Investment Manager Regime is an important Labor reform that will help to build Australia as a leading financial services centre.
The Investment Manager Regime provides certainty for the tax treatment of passive investments of certain foreign widely held funds, both in relation to offshore investments undertaken through the use of an Australian-based intermediary (conduit income), and into Australian assets.
The Investment Manager Regime consists of three elements. The first two elements were legislated in 2012, providing certainty about prior income years and the treatment of conduit income.
This legislation will deliver the final element of the Investment Manager Regime, providing additional certainty for foreign funds making passive investments into certain Australian assets.
Under this legislation, gains of foreign funds from the disposal of portfolio interests in Australian assets will be largely exempt from Australian tax.
This exposure draft builds on industry consultation including submissions received on an earlier exposure draft. These changes will make the Investment Manager Regime more flexible.
The Government will monitor the operation of the Regime and continue to consult with stakeholders on possible improvements to the regime.
The exposure draft legislation and explanatory memorandum is available on the Treasury website. Consultation closes 13 September 2013.
31 July 2013