5 May 2016

Government delivers Managed Investment Trusts reforms

The Government’s package of Bills to implement the Managed Investment Trusts reforms was passed by Parliament yesterday, Minister for Small Business and Assistant Treasurer, Kelly O’Dwyer MP said.

“These reforms were promised by Labor but never delivered,” Minister O’Dwyer said.

“The reforms modernise and enhance the competitiveness of Australia's funds management industry, one of the world’s largest and most sophisticated with more than $2.6 trillion in funds under management at 31 December 2015.

“The legislation will provide funds managers and investors with greater tax certainty and flexibility. Members of MITs will be taxed as if they had derived the trust’s income directly.

“This legislative package will reduce complexity and minimise compliance costs for managed investment trusts and their investors.

“Total compliance costs are expected to be reduced by $30 million per year,” Minister O’Dwyer said.