The Corporate Collective Investment Vehicle Framework and Other Measures Bill 2021 has completed its passage through parliament and is awaiting approval.
Corporate Collective Investment Vehicles (CCIV)
Appendices 1 to 5 of the bill set the regulatory and tax framework for CCIVs.
Schedules 1 to 4 of the bill amend company and financial services law to establish a CCIV as a new type of joint-stock company for the purpose of fund management. A CCIV is a vehicle with multiple compartments made up of one or more compartments and managed by a single corporate officer.
Appendix 5 of the bill modifies the tax law specific to the CCIV. The amendments ensure that the CCIV is taxed on a flow-through basis, with the objective that the general tax treatment of CCIVs and their members aligns with the existing tax treatment of attribution-managed investment trusts and their members.
Schedules 1, 2, 3 and 5 of the bill will come into force on July 1, 2022.
Schedule 4 of the Bill will only commence on July 1, 2022 if the Companies (Meetings and Documents) Amendment Act 2021 comes into force before that date.
Extension of Temporary Loss Carryback
Schedule 6 of the bill amends the Income Tax Act to extend the loss carryback rules by 12 months, allowing eligible tax entities to claim loss carryback tax compensation during the tax year. income year 2022-2023.
This measure will apply to contributions made in the 2020-2021, 2021-2022 and 2022-2023 income years.
Recipients of deductible donations (DGR)
Schedule 7 of the bill amends the ITAA 1997 to:
- • specifically list the Greek Orthodox Community of New South Wales Ltd, Australian Associated Press Ltd, Virtual War Memorial Ltd and SU Australia Ministries Ltd as DGRs
- • expand the specific DGR listings of Cambridge Australia Scholarships Ltd and Foundation 1901 Ltd, and
- • Delete the specific DGR listing of East African Fund Ltd (the remaining fund approved as a DGR in another category).
The changes apply to donations made:
- • July 1, 2019 to Greek Orthodox Community of New South Wales Ltd
- • between July 1, 2021 and July 1, 2026 to Australian Associated Press Ltd and Virtual War Memorial Ltd, and
- • between July 1, 2021 and July 1, 2023 to SU Australia Ministries Ltd.
The changes extend the registration period by:
- • Cambridge Australia Scholarships Ltd to apply for donations made between July 1, 2021 and July 1, 2026, and
- • Foundation 1901 Ltd to be applied to donations made between September 1, 2021 and September 1, 2026.
The amendments to remove the DGR listing of East African Fund Ltd come into effect on the first day of the quarter following Royal Assent.
Minor and technical changes
Schedule 8 of the Bill makes several miscellaneous and technical amendments to various Acts in the Treasury Portfolio, including correcting typographical and numbering errors, repealing inoperative provisions, removing administrative inefficiencies, addressing unintended outcomes , thus ensuring that the functioning of the law improves as expected.
retirement income clause
Schedule 9 of the Bill amends the Superannuation Industry (Supervision) Act 1993 to insert a new clause requiring trustees of registerable superannuation entities to develop a retirement income strategy for beneficiaries who are retired or close to retirement.
The amendments come into force the day after Royal Assent and will allow trustees to gather the information needed to formulate a retirement income strategy that will be made public beginning July 1, 2022. Trustees are not expected to apply all components of their strategy by July 1, 2022, as it will be an ongoing process.
Employee share ownership (ESS): remove the cessation of activity as a tax point
Schedule 10 of the bill amends the ITAA 1997 to remove termination of employment as a tax point for ESS interest that is subject to deferred taxation.
This measure will apply to ESS interest for which the ESS tax deferred point occurs from the beginning of the fiscal year commencing after Royal Assent, or — if this Bill receives Royal Assent on July 1 — to ESS interest for which the deferred tax point ESS tax point occurs on or after July 1.
Source: Corporate Collective Investment Vehicles Framework and Other Measures Bill 2021, Australian Parliament website, February 10, 2022, accessed February 10, 2022.