The Government has deleted from a Bill measures announced in the 2012-13 Budget that proposed to double the withholding tax rate from 7.5% to 15% on foreign investment in managed investment trusts (MITs).
The Tax Laws Amendment (2012 Measures No 2) Bill 2012 was passed by the House of Reps Wed 20.6.2012, with 2 Government amendments that withdraw the relevant provisions from the Bill. The amendments omit Schedule 4 (Change to managed investment trust final withholding tax rate) and related provisions from the Bill. However, the Assistant Treasurer said the changes would be “considered in a separate Bill to be introduced in the Parliament in coming days”.
The associated Pay As You Go Withholding Non-compliance Tax Bill 2012 was passed by the House of Reps on Wed 20.6.2012, without amendment.
Both Bills then moved to the Senate [where they later passed – see subsequent storey].
[LTN 117, 20/6]