Update on Attribution Managed Investment Trust (AMIT) Legislation
The Attribution Managed Investment Trust (AMIT) legislation was passed into law in May 2016 and the new regime can now be adopted by qualifying managed investment trusts.
Mainstream has previously provided information on what we are doing to prepare for AMIT and are pleased to announce that we are on schedule to cater for AMIT funds for the financial year end 30 June 2018 (FY17/18).
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 Managed Investment Trust (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, or do not elect into the regime, will continue to be taxed under the existing trust tax provisions.
Mainstream’s progress in preparing for AMIT
Mainstream has been working with its software providers on an ongoing basis to ensure compliance with AMIT for FY17/18.
Fund managers and trustees should, by now, have determined 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. They should also consult with their tax advisors around the implications of electing into the AMIT regime.
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.