Income Tax Rates Amendment (Managed Investment Trusts) Bill 2015

Mr HAWKE (Mitchell—Assistant Minister to the Treasurer) (11:27): I move:

That this bill be now read a second time.

The Income Tax Rates Amendment (Managed Investment Trusts) Bill 2015 forms part of a package of bills to introduce a new system for taxing managed investment trusts (MITs).

This bill specifies the rate of tax payable by trustees of attribution managed investment trusts in some circumstances. Under the new tax system, investors are generally taxed on amounts attributed to them by the trustee of a managed investment trust, as if they had invested directly. In limited circumstances, tax may occur at the trustee level instead of at the investor level to ensure that correct tax outcomes occur. This primarily occurs if the trustee does not attribute all income to members. In this case, the trustee is taxed on the unattributed income, to ensure that this income does not escape taxation. The unattributed income is generally taxed in the hands of the trustee at the highest individual marginal tax rate, plus the Medicare levy.

Further details of the bill and the new tax system applying to managed investment trusts are set out in the explanatory memorandum for the Tax Laws Amendment (New Tax System for Managed Investment Trusts) Bill 2015.