On 16 August 2011, the Assistant Treasurer announced the release of exposure draft legislation to the proposed interim Investment Manager Regime. Currently, uncertainties over the tax treatment of investment incomes from foreign managed funds are considered to be having an adverse effect on the investment decisions of those funds. The proposal provides greater certainty in relation to the taxation treatment of certain investment incomes derived during the 2010-11 (and earlier) income years. Greater certainty is provided by preventing the Australian Taxation Office from raising assessments for those income years; and exempts from income tax any relevant investments of a foreign fund, where that income is taken to have been derived through a permanent establishment in Australia. The Regulation Impact Statement was prepared by the Treasury and was assessed as adequate by the Office of Best Practice Regulation.
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