Modernising the MIT framework

In a move supported by all parties, and welcomed by the industry, long-awaited reforms to Managed Investment Trust (MIT) legislation have been passed by Federal Parliament.

Property Council International and Capital Markets executive director, Andrew Mihno (pictured) says the reforms will modernise Australia’s tax treatment of MITs and free up fund managers to focus on driving better returns for investors.

“The MIT regime is critical to ensuring all Australians have the same opportunity to invest in assets they could not otherwise own themselves.

“Managed investment trusts are a vital avenue for attracting investment capital to Australia,” Mihno says.

“The MIT reforms will affirm Australia as one of the world’s top destinations for global real estate investment capital.

“Over 14 million Australians are investors in property trusts, either directly or indirectly through their retirement savings.

“A vibrant MIT regime helps fund the property and community infrastructure vital to our economy.

“The industry currently operates under rules that were designed long before MITs ever existed, creating an unnecessary level of complexity and uncertainty.

“Differences in the operation of tax law and trust law made it difficult to even determine the income to distribute to investors.

 “The MIT reforms enjoy bipartisan support, originally designed under the then Labor Government and actively advanced by the Coalition.

“This reform will boost Australia’s standing as a leading funds management hub which has been the common goal supported by both major political parties.

“This is a fine example of what can be achieved when all sides of politics work in concert to champion good ideas for Australia.”