The Tax Laws Amendment (Clean Building Managed Investment Trust) Bill 2012 was introduced in the House of Reps on Wed 10.10.2012. It amends the Income Tax (Managed Investment Trust Withholding Tax) Act 2008, the ITAA 1997 and the Taxation Administration Act 1953 to provide a final withholding tax rate of 10% on fund payments from eligible Clean Building Managed Investment Trusts (MITs) made to foreign residents in information exchange countries.
In order to be a Clean Building MIT and access the concessional final withholding tax rate, a MIT must hold one or more clean buildings. Clean buildings are new energy efficient buildings for which construction began on or after 1 July 2012. These buildings must be office buildings, hotels or shopping centres, or a building consisting of a combination of these. To be treated as an energy efficient building, a building must obtain and maintain either a 5-star Green Star rating or a 5.5 star National Australian Built Environment Rating System (NABERS) rating. These criteria will be reviewed after 3 years to ensure the changes continue to apply to buildings that are above the average level of energy efficiency.
Where a MIT fails to satisfy the criteria to be a Clean Building MIT, its fund payments made to foreign residents in information exchange countries will be taxed at 15%.
DATE OF EFFECT: will only apply to fund payments from a clean building managed investment trust in relation to the income years starting on or after 1 July 2012.
[LTN 196, 10/10]
Parliamentary Joint Committee recommends passing Bill
The Corporations and Financial Services Parliamentary Joint Committee Mon 29.10.2012, tabled in the House of Reps reports into the following Bills:
- – the Bill proposes to implement a final withholding tax rate of 10% on fund payments from eligible Clean Building Managed Investment Trusts (MITs) made to foreign residents in information exchange countries. The Committee Tax Laws Amendment (Clean Building Managed Investment Trust) Bill 2012recommended the Bill be passed, subject to 2 small technical amendments.
[LTN 209, 29/10]
Passes House of Reps with 1 Gov’t amendment for Committee recommendation
The Tax Laws Amendment (Clean Building Managed Investment Trust) Bill 2012 has passed the House of Reps with 1 Government amendment and now moves to the Senate. The 1 Government amendment broadly implements the recommendations made by the Corporations and Financial Services Parliamentary Joint Committee in its report of the Bill tabled yesterday [Mon 29.10.2012].
[LTN 210, 30/10]