Explanatory Memorandum
(Circulated by the authority of the Deputy Prime Minister and Treasurer, the Hon Wayne Swan MP)General outline and financial impact
Clean Building Managed Investment Trust
The Tax Laws Amendment (Clean Building Managed Investment Trust) Bill 2012 amends the Income Tax ( Managed Investment Trust Withholding Tax ) Act 2008 , the Income Tax Assessment Act 1997 and the Taxation Administration Act 1953 to provide a final withholding tax rate of 10 per cent on fund payments from eligible Clean Building Managed Investment Trusts (MITs) made to foreign residents in information exchange countries.
Date of effect : This measure will only apply to fund payments from a clean building managed investment trust in relation to the income years starting on or after 1 July 2012.
Proposal announced : The measure was announced by the Assistant Treasurer and the Parliamentary Secretary for Climate Change and Energy Efficiency in Joint Media Release No. 053 of 27 June 2012.
Financial impact : This measure is estimated to have a small and unquantifiable cost to revenue over the forward estimates period.
Human rights implications : This Bill does not raise any human rights issue. See Statement of Compatibility with Human Rights - Chapter 2, paragraphs 2.1 to 2.9.
Compliance cost impact : Low.