Non-concessional MIT income: is your staple ready for life without relief?

For entities that own facilities that are not economic infrastructure facilities, the seven-year transitional relief period for managed investment trust (MIT) cross-staple arrangement income is due to expire on 30 June 2026. This means that the effective tax rate for foreign investors will increase from 15% to 30%.

This article outlines the implications of the transitional relief ceasing to apply from 1 July 2026 and identifies the matters that entities should consider in anticipation of operating outside the transitional regime.

A stapled structure is an investment structure commonly used in Australia by the infrastructure and real estate sectors, in which two or more separate legal entities are 'stapled' together under common ownership. For example, the structure may include an asset entity and an operating entity, whereby the legal title to assets sits in a trust and the operating business sits in a company. Stapled structures previously came under heightened