The draft legislation of the Government’s proposed new tax system for managed investment trusts proposes that super funds (and other exempt entities that are entitled to a refund of excess imputation credits) be excluded from the 20% tracing rule for the public trading trust rules.

If this measure is enacted this will mean that the mere fact that self managed superannuation fund's (SMSFs) hold 20% or more of the units in a unit trust will not cause the unit trust to be a public trading trust (for more information on public trading trusts see our article). Such a result will be a welcome relief to most SMSFs affected by the public trading trust rules as well as assisting in the reduction of “red tape”.

For further information please contact:

Phil Broderick
Principal
Sladen Legal
+61 3 9611 0163 | +61 419 512 801
pbroderick@sladen.com.au