Understanding the Attribution Managed Investment Trust (AMIT) regime

23 Feb 17

The Attribution Managed Investment Trust (AMIT) legislation has now passed into law. The new provisions are available to be adopted by qualifying managed investment trusts.

Below we look at the framework of AMIT for fund managers.


What is AMIT?

The new regime introduces new rules for the taxing of income derived through AMITs. It is a critical and long awaited piece of legislation for the Australian funds management sector.

The legislation provides qualifying MITs with improved flexibility and greater certainty with regards to their tax treatment; among other things, it deems them to be fixed trusts for tax purposes, facilitates multi-class structures and codifies the treatment of 'unders' and 'overs'. MITs and other Trusts that do not qualify will continue to be taxed under the existing trust tax provisions.

Fund managers and trustees need to determine whether each of their funds is eligible to elect into the AMIT regime and if so, whether and when they will elect in. As a part of this process, they need to ensure that their documentation, systems, processes and service providers are ready for the transition.

What is FundBPO doing to prepare for AMIT?

FundBPO is working on updating investment administration, fund accounting and unit registry procedures as well as working with our software providers to ensure compliance with AMIT before FY17/18.


More information

If you are planning to elect into the AMIT regime, please contact your compliance officer to discuss the changes required to your funds.

Contact us to learn more about the steps FundBPO is taking to comply with AMIT.


Further reading:

> ATO: New taxation system for managed investment trusts

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This article is not intended to be financial advice and is of a general nature only that does not take into account your individual objectives, financial situation or needs. While all efforts have been made to ensure the information contained in this article is accurate, errors may occur.
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