Draft legislation introduces tax components of CCIV regime

The government has begun consultation on finalising its Corporate Collective Investment Vehicles (CCIVs) regime, and is calling on stakeholders to voice their opinions on the proposed tax and regulatory components through 24 September.

The forthcoming regime is part of the government’s push to increase the competitiveness of Australia’s managed funds industry by allowing fund managers to offer investment products using vehicles that are more familiar to overseas investors.

The CCIV regime was first announced in the 2016-17 budget. The 2021-22 budget committed to completing its implementation by 1 July 2022.

The government has released draft legislation for public consultation that implements the tax and regulatory components of the CCIV regime and their related explanatory materials.

Several rounds of consultation cemented the government's intention to devise a framework that will provide: 

• Equivalent tax treatment of CCIVs with that of Attribution Managed Investment Trusts.
• Flexibility for CCIVs to use a custodian or a depositary.
• Flexibility to list a retail CCIV with one sub-fund on a prescribed financial market in Australia.
• Flexibility to cross-invest between different sub-funds of a CCIV.

A joint media release from Treasurer Josh Frydenberg and Assistant Treasurer Michael Sukkar called this the latest step in a plan to deliver a viable, modern collective investment vehicle, positioning Australia’s managed funds industry to attract greater offshore investment now and into the future.

Details for interested parties wishing to respond to the draft legislation can be found on the Treasury website.