Final Withholding for Managed Investment Trust Distributions

The Government has made further progress toward delivering one of its election promises, repeated in last week’s Budget – to change the regime for taxing distributions to foreign residents who invest in Australian managed funds.  This Tax Brief examines the recently released Exposure Draft of the provisions to accomplish this measure.  This will be very significant for the managed funds industry, especially listed property trusts, although wholesale funds and funds in sectors other than property will need to monitor their exposure.  In addition, any distributions from the property sector will now have to be carefully monitored if they flow through several trusts before leaving Australia.

For our full Tax Brief - click here.