The Government has today introduced the Tax Laws Amendment (Managed Investment Trusts Withholding Tax) Bill to give effect to the change to the withholding tax rate proposed in the 2012-13 Budget, said Assistant Treasurer David Bradbury.
The Gillard Government has made sure that the 15 per cent withholding tax for managed investment trusts proposed in the 2012-13 Budget brings us into line with or better than the US, Canada, Hong Kong and the UK and is still half the rate it was when we came to office in 2007.
"These are sensible measures that will maintain Australia's competitive tax rates to attract investment," said Mr Bradbury.
"Under the former Howard Government the rate of withholding tax for managed investment trusts was 30 per cent - double the rate proposed in the Budget.
"The Coalition is now trying to block these changes.
"If the Coalition is genuinely opposed to the 15 per cent withholding tax rate then he should commit to reversing it in office and come clean about which payments and frontline services the Coalition will cut to pay for it."