The Australian Government has announced the introduction of two new types of collective investment vehicles (CIVs) as a tax-effective alternative to current Australian pooled investment trusts. The new vehicles will be a corporate CIV and a limited partnership CIV.

The availability of these new CIVs is expected to significantly enhance the ability of Australian fund managers to offer their products to international investors.

These reforms will enhance the international competitiveness of the Australian managed funds industry by allowing fund managers to offer investment products using vehicles that are commonly in use overseas.

The proposed two new CIVs will also maximise the effectiveness of related Government initiatives aimed at increasing access to overseas markets, including the Asia Region Funds Passport.

The Asia Region Funds Passport is an international initiative which aims to increase the access of Australian fund managers to overseas markets (refer link: Asia Region Funds Passport – Memorandum of Cooperation).

Source: Minter Ellison – Lexology (Read full article here).