The Government has released for public consultation two bills that implement the tax and regulatory components of the CCIV regime and their related explanatory materials. This consultation allows stakeholders the ability to assess the complete package of reforms to implement the Corporate Collective Investment Vehicle (CCIV).
A CCIV is an investment vehicle intended to increase the competitiveness of our export funds management industry and attract foreign investment. Strong investor protections will be in place for retail CCIVs including the requirement to have an independent depositary. The depositary is responsible for the oversight of key administrative functions of the CCIV and the safekeeping of the CCIV's assets.
The proposed new law contains:
- the new Chapter 8B in the Corporations Act 2001 containing the core provisions outlining the establishment of CCIVs and their operational and regulatory requirements;
- amendments to other legislation to support the implementation of CCIVs (such as amendments to the Australian Securities and Investments Commission Act 2001 and the Personal Property Securities Act 2009); and
- the tax legislation, which ensures the tax treatment of CCIVs broadly aligns with the existing treatment of attribution managed investment trusts, providing investors with the benefits of flow-through taxation.
The Government has consulted extensively with stakeholders on the design of the CCIV regulatory and tax framework, including multiple rounds of public consultation, and this refined exposure draft reflects ongoing stakeholder input.
Stakeholders are invited to lodge submissions online via the Treasury's consultation hub. The closing date for submissions is 28 February 2019.