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Investors welcome managed investment fund announcements


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Contact:  Louise Denver
Corporate Affairs & Communications
Deloitte
Mobile: 0414 889 857
Tel: +61 (0) 2 9322 7615

The Government has responded to industry pressure articulated through the Board of Taxation review and announced that managed investment trusts can elect to hold shares, units and real property and achieve the same Capital Gains Tax (CGT) treatment as individual investors.“This is a welcome relief for investors and fund managers,” said Deloitte Tax Partner Adele Watson.

“At last this initiative will remove the current uncertainty that exists in the industry and ensure the survival of the managed investment trusts industry.

“Individual and superannuation fund investors can now continue to take advantage of the pooled investment benefits offered by managed investment schemes without losing the discount capital gains concession on the realised capital gains distributed by the trust, where the underlying asset was held for 12 months or more,”  Watson said.

“While the Board of Taxation is currently undertaking a review of how managed investment trusts are taxed, the issue of whether the investments should be held on capital or revenue account was critical to the survival of the industry,” she said.

“In addition, as Assistant Treasurer Chris Bowen announced there is to be a narrowing of application of the current foreign investment regime which to date has been a compliance headache for fund managers.

“Any reduction in compliance costs is welcomed by fund managers who to date have had to manage the investments from the application of the overly complex provisions,” Watson said.

For further information:
Adele Watson
Partner Tax Services
Deloitte
Mobile: 0404 063 026
Tel: + 61 (0) 2 9322 7752

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