25 November 2021

Australia's managed fund industry to attract more international investment

The Morrison Government has introduced legislation that will supercharge international investment into Australia’s fund management industry. 

The Corporate Collective Investment Vehicle (CCIV) regime will accelerate Australia’s $2.5 trillion funds management industry, back in Australian companies to attract talented employees and extend much needed support to continue Australia’s economic recovery.

The CCIV regime will enhance the international competitiveness of the Australian funds management industry by allowing it to use a structure that is more familiar to overseas investors.

Special Envoy for Global Business and Talent Attraction Peter Verwer AO said the establishment of the CCIV regime will send a strong signal to the world that Australia is an attractive location to manage global capital.

“This initiative will help boost Australia’s share of global funds, more closely matching its strengths as a financial services hub,” Mr Verwer said.

Currently only around 5 percent of the $2.5 trillion in funds managed in Australia comes from overseas. The CCIV regime is designed to boost this figure, providing economies of scale to both domestic and foreign investors resulting in lower investment costs.

The CCIV regime was a key recommendation of the Australian Financial Centre Forum’s Johnson Report, alongside the Asia Region Funds Passport regime which the Government implemented in 2018. By extending the Passport to cover CCIVs, the Government is maximising the Passport’s effectiveness in increasing Australian access to overseas markets.

The CCIV regime was committed in the 2021-22 Budget and the Morrison Government is delivering on that commitment. The Government expects the CCIV regime to commence from 1 July 2022.

The legislation also contains a range of measures to improve outcomes for superannuation members in the retirement phase, extend the Government’s temporary loss carry-back measure, and an update to the list of deductible gift recipients.

Through this legislation, the Morrison Government continues to enhance Australia’s position as a global financial services hub, resulting in greater offshore investment into Australia now and into the future.