MIT Changes, The Tax Benefits for Investors

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Recent changes to the taxation of distributions to foreign investors in Australian managed funds will see a reduced rate of withholding, dropping from the current rate of 15% to 7.5% from 1 July 2010.

There is also added advantage for resident and foreign investors, with eligible managed funds now able to treat certain fund assets on capital account, allowing investors to benefit from flow through capital gains tax treatment in respect of any gains realised from the disposal of those fund assets.