The Property Council welcomes the Federal Government’s new measures that provide an elective regime for Managed Investment Trusts to treat eligible investments as capital and apply the CGT regime upon disposal.
Property Council Chief Executive Peter Verwer says these measures build on recent Board of Taxation recommendations to clarify the proper treatment of investment assets for trusts.
“The Board of Taxation’s comprehensive review into the tax arrangements for Managed Investment Trusts (MIT) is yet to be finalised, but this measure is the Federal Government’s down payment on modernising the MIT regime,” he says.
“It clarifies how trusts should treat the sale of investment assets once and for all, and puts the property industry on surer footing in unstable economic times.”
“This has significant positive implications for trusts that need to secure their investment capital gains tax status ahead of vital restructures and strategic repositioning.”
“This measure will also help minimise disputes with the ATO, bolster the integrity of the tax system, reduce compliance costs and bring government one step closer to its commitment to making Australia the funds management hub for the Asian region.”
“The Property Council looks forward to working with Government to implement these important measures.”
For further information:
Peter Verwer, Chief Executive, Property Council of Australia
Ph: 0407 463 842
Roberto Fitzgerald, Executive Director International & Capital Markets
Ph: 0411 549 248
Andrew Mihno, Deputy Executive Director International & Capital Markets
Ph: 0406 454 549