Thursday, 3 December 2015
Medicare Levy Amendment (Attribution Managed Investment Trusts) Bill 2015; Second Reading
That this bill be now read a second time.
The Medicare Levy Amendment (Attribution Managed Investment Trusts) Bill 2015 forms part of the package of bills to introduce a new system for taxing managed investment trusts.
The bill amends the Medicare Levy Act 1986 to impose the two per cent Medicare levy on trustees of attribution managed investment trusts in some circumstances. Under the new tax system, tax is generally applied at the investor level. However, tax may be applied at the trustee level to ensure that correct tax outcomes occur. This primarily occurs if the trustee does not attribute all income to members. Where this is the case, the trustee will be taxed on the unattributed income at the highest individual marginal tax rate plus the Medicare levy in certain circumstances. This operates to ensure that income does not escape taxation.
Further details of the bill and the new tax system applying to managed investment trusts are set out in the explanatory memorandum for the Tax Laws Amendment (New Tax System for Managed Investment Trusts) Bill 2015.