The Government has today released a second exposure draft of legislation implementing the first stage of the Investment Manager Regime (IMR). The first exposure draft was released on 16 August 2011.

“The Government is pleased to release this second exposure draft legislation, which gives effect to our previous announcements on the IMR made on 17 December 2010 and 19 January 2011,” Minister Shorten said today.

“The revised draft takes into account issues raised by stakeholders with the previous draft and demonstrates the Government’s commitment to consultation and to working with industry to implement these important reforms.”

The first stage of the IMR has two objectives: firstly, to alleviate the impact of US accounting standard “FIN 48”; and secondly to address the situation where a foreign managed fund is taken to have a permanent establishment in Australia because of its use of an Australian advisor, potentially resulting in some or all of the income of the fund being subject to Australian tax. 

The Government announced the final element of the IMR on 16 December 2011, legislation for which has not yet been drafted. Consultation on the development of this legislation will be undertaken at a later stage.

“I encourage stakeholders to continue to engage with both the Treasury and with Government and to provide their submissions on this exposure draft within the allotted timeframe.”

Submissions on the exposure draft legislation close on 4 April 2012.