Reforms amplify Australia s investment appeal

Reforms amplify Australia’s investment appealProposed changes to the managed investment trust regime are an opportunity to cement Australia as a top-tier destination for global real estate investment capital.The federal government has released exposure draft legislation to reform the operation of Managed Investment Trusts (MITs).The draft Tax Laws Amendment (New Tax System for Managed Investment Trusts) Bill 2015, proposes changes that will help improve Australia’s standing as an attractive investment destination.Among the reforms suggested by the draft legislation are those that will make it easier for managed investment trusts (MITs) to access: trust loss rules that allow the MIT to carry forward losses in a weak economy; capital gains rules that prevent unnecessary additional costs on acquisitions and enable the trusts to attract investors via scrip-for-scrip acquisitions; and franking credits that remove unnecessary tax burdens for unit holders.Importantly, international life companies will now also able to invest under the MIT regime. This represents about $2.6 trillion in global capital that Australia can now compete for to boost the economy and help fund large-scale property and community infrastructure.The Property Council of Australia’s executive director of International and Capital Markets, Andrew Mihno, said the government’s MIT initiative is a hallmark reform that the Property Council strongly supported.”The reforms provide certainty to industry and help attract patient long-term capital that Australia needs to build prosperity,” Mihno said. “The measures give industry an armoury of practical solutions to difficult issues.”The industry currently operates under rules that were designed long before MITs ever existed and they create an unreasonable level of complexity and uncertainty for a key industry that drives the Australian economy.”The government’s innovative approach promises to simplify trust distributions and ensure MITs can rely on their trust deeds to distribute income and focus on what really matters – driving better returns for investors.”Industry is reviewing the draft legislation and looks forward to working closely with the government on the most effective ways to implement this reform package,” he said.For more click here.Media contact: F­iona Benson | M 0407 294 620 | E [email protected]