The most recent draft legislation from the Treasury, released on Friday, looks to amend the current tax law to set out the tax treatment for a CCIV – investment vehicles that are compatible in structure with overseas markets.
In a statement from Treasurer Josh Frydenberg’s office, the government has stated that it is committed to delivering a viable, modern collective investment vehicle, and was now accepting views from the industry on their revised policy position in order to finalise the CCIV structure.
The industry body welcomed progress on the regime for CCIVs, which have been in development by the government since 2017.
“We are supportive of significant changes to the revised draft [legislation], particularly to remove tax penalties on CCIVs, increase flexibility on CCIVs using custodians, improve the ability of CCIVs to list on financial markets, and allow cross-investment between CCIV sub-funds,” said FSC chief executive Sally Loane.
“Foreign capital currently only contributes just over 5 per cent of investment into Australian managed funds, $126 billion as a proportion of $2.2 trillion.
“The FSC has long advocated for using our large and successful funds management sector’s untapped potential as a major export opportunity”.
The FSC has stated that they will respond to the draft legislation shortly with feedback following a consultation with members.
The Treasury’s consultation will run until 24 September.
