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Capital account election

Last updated 25 May 2022

Instructions to follow if the trustee of the AMIT has made a capital account election.

Has the trustee made an election into managed investment trust capital account treatment?

Trustees of eligible AMITs may make an irrevocable election to apply the CGT provisions for the taxation of gains and losses on disposal of eligible assets. A trust will be eligible for capital treatment if it meets the definition of a MIT at the relevant time.

The trustee of an AMIT may make the election. The election must be made:

  • in the first year the trust is a MIT
  • in an approved form.

If you make an election for capital treatment, or have previously made an election, answer Yes to this question in the AMIT tax return. Otherwise, answer No.

How to make a capital account election

The trustee of an AMIT makes a capital account election by answering Yes to the following question on the AMIT tax return: Has the trustee made an election into managed investment trust capital account treatment?

The election must be made on or before:

  • the day the AMIT is required to lodge its tax return for the income year in which it became a MIT, or
  • if the Commissioner allows a later day, that later date.

You must make the election in relation to the first year the trust qualifies as a MIT, and it is irrevocable as long as the MIT remains eligible. If you are the trustee of a MIT that came into existence in an earlier income year (and are therefore no longer eligible to make the election), you must still answer the question asked in the AMIT tax return to confirm whether you have previously made an election for capital treatment.

When does the election take effect?

For trusts that became a MIT before 2009–10, the election will have effect for 2008–09 and later years.

For trusts that became a MIT in 2009–10 or a later year, the election will have effect for the income year in which the trust became a MIT and later income years.

Stapled entities

Instructions to follow if the trust is stapled to another entity.

Is the AMIT stapled to another entity?

An entity is a stapled entity in relation to stapled securities if ownership interests in the entity form part of the stapled securities.

Answer Yes or No as appropriate.

If the AMIT is stapled to another entity, enter the ABN for each of the entities the AMIT is stapled to.

Continue to: Capital allowances

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