In this Australian tax update we briefly outline two recent
developments in Australian tax.
- The key taxation proposals relevant to foreign investors
announced in the Australian federal budget delivered on 8 May
2012.
- Two major new taxes to commence in Australia on 1 July 2012
– the mining tax and the carbon tax.
Key budget announcements
We set out brief highlights of key announcements relevant to
foreign investors below. For more detailed analysis of the budget,
please refer to our Tax Briefs in both
English and
Chinese (in abbreviated form).
Managed Investment Trust withholding rate
Australian collective investment trusts which qualify as Managed
Investment Trusts under the tax law are entitled to concessional
tax treatment. One of these concessions is that distributions made
by a Managed Investment Trust to a foreign resident beneficiary is
currently subject to only 7.5% withholding tax, provided the
beneficiary is resident in a country with
