The government has released draft legislation for the Asia Region Funds Passport and the tax treatment of corporate collective investment vehicles.
The released of the draft Asia Region Funds Passport bill comes after finalisation of consultation on enabling legislation announced in August 2017.
This, the second round of consultation, will enable legislation to be put in place for the first half of 2018, according to Minister for Revenue and Financial Services Kelly O'Dwyer.
Japan, Korea, New Zealand and Thailand are also implementing the passport, Ms O'Dwyer said.
The accompanying corporate collective investment vehicles (CCIV) taxation bills will "increase the competitiveness of Australia's managed funds industry by aligning Australia's legal funds structures with those found in the rest of the world", she said.
"The proposed tax framework for the new CCIV has been designed to broadly align with the attribution tax regime for managed investment trusts (MITs). One of the key features of the CCIV tax regime is capital gains tax relief for attribution MITs that convert into CCIVs and meet the eligibility requirements for attribution tax," the minister said.
"This capital gains tax relief will ensure investors’ balances are not reduced by tax at the time the attribution MIT moves into the CCIV regime."
The government plans to consult with industry on the regulatory aspects of the CCIV framework in the first half of 2018, she said.