Explanatory Memorandum
(Circulated by the authority of the Deputy Prime Minister and Treasurer, the Hon Wayne Swan MP)General outline and financial impact
Managed Investment Trust final withholding tax rate
The Income Tax (Managed Investment Trust Withholding Tax) Amendment Bill 2012 amends the Income Tax (Managed Investment Trust Withholding Tax) Act 2008 to increase the Managed Investment Trust (MIT) final withholding tax from 7.5 per cent to 15 per cent on fund payments made in relation to income years that commence on or after 1 July 2012.
Schedule 1 to Tax Laws Amendment (Managed Investment Trust Withholding Tax) Bill 2012 makes consequential amendments to the Taxation Administration Act 1953 to give effect to the increase in the concessional MIT final withholding tax rate imposed by the Income Tax (Managed Investment Trust Withholding Tax) Amendment Bill 2012.
Date of effect : The amendments apply from 1 July 2012.
Proposal announced : The measure was announced as part of the 2012-2013 Budget.
Financial impact : Expected to generate approximately $260 million, in revenue, over the forward estimates.
| 2012-13 | 2013-14 | 2014-15 | 2015-16 |
| $50m | $65m | $70m | $75m |
Human rights implications : This Schedule does not raise any human rights issue. See Statement of Compatibility with Human Rights -Chapter 2, paragraphs 2.1 to 2.4
Compliance cost impact : Low.