Attribution Managed Investment Trust (AMIT) reforms have finally passed through Parliament!

The Australian Government has finally passed the AMIT Bill through Parliament.

The legislation creates a new regime for Attribution Managed Investment Trusts (AMIT), which will provide qualifying managed investment trusts (MITs) with improved flexibility and greater certainty in respect of their tax treatment.

AMIT was first announced by the Government more than five years ago. The passing of the Bill in Parliament has been a very long awaited and highly anticipated tax development for the Australian funds management industry.

AMIT represents the most significant change to the tax treatment of managed funds in Australia. Any Australian fund managers or investors that manage or invest in trusts that are caught by the regime will need to address the following issues:

·         compliance issues – undertake a detailed assessment of the impact of complying with AMIT on the relevant trusts, including whether or not the trusts are eligible to apply the AMIT regime and able to comply with the AMIT regime. This may require significant updates to the systems used to administer the relevant trusts;

 

·         product opportunities – identify what opportunities and additional flexibilities are provided under the AMIT regime and which of those opportunities you should utilise (including new product offerings); and

 

·         deed amendment projects – assess what changes to the trust deeds and constitutions for the relevant trusts should be made, in order to allow the relevant trusts to be able to utilise and comply with the new regime. You should also look to capitalise on the opportunities and flexibilities presented by the new regime.

Most Australian fund managers and institutional investors in trusts have been closely monitoring these developments. The final form of AMIT is likely to provide those managers and investors with the certainty necessary in order to move forward with their AMIT projects. They will now be in a position to develop the systems necessary to comply with and capitalise on the new regime.

G&B Lawyers is here to assist Australian fund managers, responsible entities and trustees understand the new AMIT regime and to address the issues highlighted above.

 

G&B Lawyers

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