The Property Council says industry welcomes Treasury's initiative to modernise the taxation of trust income by amending or rewriting Division 6. The Division will affect trust distributions and is critical for any property trusts that are not managed investment trusts (MITs).
The current Division 6 rules have been in place for a number of years, and are understood by the industry. Clear, predictable and simple rules are vital to retain the international competitiveness of Australian property funds.
The industry needs:
- clear workable rules under both the MIT regime and Division 6;
- rules that reflect current industry practice;
- simple, clear rules on the interaction between the MIT regime and Division 6 rules;
- the MIT regime to be developed in conjunction with the new Division 6 rules; and
- the MIT consultation process to continue and for the outstanding issues to the workshopped.
To read more from this submission, download the PDF.