Modernised MIT legislation gets full marksA new tax system for Managed Investment Trusts will boost Australia’s standing as a premier destination for global capital.The legislation for managed investment trusts (MITs), introduced into Federal Parliament last week, aims to reduce complexity, increase certainty and minimise compliance costs for MITs and their investors.According to Andrew Mihno, the Property Council’s executive director of International and Capital Markets, the reforms have the full support of industry and deliver long-awaited improvements critical to Australia’s competitiveness.”This legislation fundamentally overhauls the operation of tax law for MITs to significantly boost Australia’s competitiveness as a world-leading investment destination,” Mihno says.”The flow of global real estate capital is skyrocketing and this new MIT framework puts Australia in the best position to maximise opportunities from this unprecedented uplift.”A dedicated regime for taxing income derived through MITs has been under development since the Board of Taxation’s 2009 review.Mihno says the package of reforms, which have been “years in the making”, meet all of industry’s objectives by “increasing certainty and flexibility while also streamlining compliance to reduce unnecessary costs”.”Over 14 million Australians have a stake in property through their retirement savings and they stand to benefit as MITs are freed up to focus on driving better returns for investors.”If enacted, the Tax Laws Amendment (New Tax System for Managed Investment Trusts) Bill 2015 will apply from 1 July 2016. However, a trustee of a MIT can choose to apply the rules from 1 July 2015.Read more about the new taxation system for MITs.
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