Important tax update - AMIT status

FIL Responsible Entity (Australia) Limited (FREAL) is the responsible entity of the funds set out below.

FREAL considers that one or more of the Funds will not qualify as either a managed investment trust (“MIT”) or an attribution managed investment trust (“AMIT”) for the 2019-2020 Financial Year starting on 1 July 2019 (the "Year") based on the current investor profile.

The MIT/AMIT status of each Fund for the Year is set out below.

A Fund categorised as a Non-MIT for the Year will also cease to qualify as an AMIT for the same Year. 

The main consequence of a Fund being categorised as a Non-MIT for the Year is that gains realised by the relevant Fund from 1 July 2019 will be revenue gains and taxed as income, not capital gains, when distributed to investors. This means investors of the relevant Fund will no longer benefit from the capital gains tax (“CGT”) discount on distributions of any long-term gains realised by the relevant Fund after 30 June 2019. 

A change in a Fund’s MIT/AMIT status on 1 July 2019 should not impact the taxation treatment of:

  • Distributions (if any) made in July 2019 out of any capital gains realised by the relevant Fund in the year ended 30 June 2019 (I.e. the CGT discount can apply to July 2019 distributions of long-term capital gains);
  • Any capital gain or loss realised by investors on disposing of units in a Non-MIT Fund (whether before or after 30 June 2019).

A Non-MIT Fund may requalify as a MIT/AMIT for future financial years if more investors subscribe.

Due to the complexities of Australian tax law, it is recommended that you seek professional tax advice if the taxation consequences are important to your decision to invest, or remain invested, in the Fund.