Managed Investment Trust (MIT) withholding tax concession


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.