Natalie Raju discusses the introduction of a new tax and regulatory framework for collective investment vehicles.
In 2016, the Federal Government committed to the introduction of a new tax and regulatory framework for two new types of collective investment vehicles (CIV): a corporate CIV and a limited partnership CIV. It is anticipated that the corporate CIV will be introduced this year and the partnership CIV next year.
Whilst we are yet to see the details of the legal and regulatory framework for the corporate CIV (which are still being developed through detailed consultation), the managed funds industry and Treasury are now turning their focus to the next phase of the roll-out, being the tax framework for the corporate CIV.
So, what are some of the issues that need to be considered and what is on the tax ‘wish list’ for fund managers?
Whilst the 'wish list' may seem lengthy, the CIV is an important structural reform to the funds management industry, which will remove long standing barriers to attracting global investment. It is crucial that the tax framework supporting the CIV enables it to be an attractive alternative vehicle for investment both domestically and globally.