Stapled structures and managed investment trusts
The Property Council of Australia has welcomed the Senate Economics Legislation Committee recommendation that legislative certainty for stapled structure arrangements be provided to the Australian commercial real estate sector.
“The Committee’s recommendation that the bills be passed is another step towards providing long-term certainty around the rules for institutional investment in real estate benefiting millions of Australians’ retirement savings,” said Property Council Chief Executive Ken Morrison.
“After an extensive consultation process with industry, it’s now important that the market has resolution of these issues and the Bills are passed without further delay,” Mr Morrison said.
“Importantly, the Bills acknowledge and support the transparency and professionalism of Australia’s institutional real estate sector which is world-leading.
“The Bills strongly support the existing policy framework for ‘traditional’ real estate classes and allow Build-to-Rent housing to be included within a managed investment trust, although with higher withholding tax rates.
“We would have liked to see a more sector-neutral approach to withholding tax rates in the legislation, but it is now important that certainty be delivered for the industry.
“We welcome the consultative approach taken by the Government on these stapled structure settings under the former Treasurer which has led to this milestone,” Mr Morrison said.
Media contact: Matt Francis | M 0467 777 220 | E firstname.lastname@example.org