Managed Investment Trust (MIT) withholding tax concession

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The MIT withholding tax concession was originally announced by the Australian Government (Government) in its 2008–09 Federal Budget of 13 May 2008.

It subsequently introduced legislation on 4 June 2008 which provided a significant reduction in withholding tax (from 30% progressively to 7.5% over three years) on certain distributions (predominantly rental income and certain capital gains) from Australian MITs to specified foreign investors.

The 7.5% rate applied to distributions made from 1 July 2010 to 30 June 2012. In the 2012–13 Federal Budget of 8 May 2012, the Government announced that the MIT withholding rate would double from 7.5% to 15% for fund payments made in relation to income years commencing from 1 July 2012.