The Assistant Treasurer on Wed 13.2.2013, announced the Government would [introduce Bills to] amend the income tax law to ensure foreign pension funds can access the Managed Investment Trust (MIT) withholding tax regime. This amendment will apply from the start of the withholding tax regime, 1 July 2008. “The amendment will ensure that the law better aligns with the original policy intent of the MIT withholding regime,” said Mr Bradbury.
MIT fund payments are subject to a final withholding tax rate of 15% where the fund payment is made to a resident from a country with an effective exchange of information agreement with Australia. Payments made to residents of non-exchange of information countries are subject to a final tax withholding rate of 30%.
Source: Assistant Treasurer’s press release No 012, 13 February 2013
[LTN 29, 12/2/13]