Tuesday, August 21, 2012
The Australian government has released draft legislation for the introduction of a lower withholding tax rate for those managed investment trusts holding only energy efficient commercial buildings as assets.
A 10% withholding tax rate will be available to those trusts possessing only newly constructed energy efficient commercial buildings.
The "Clean Building Managed Investment Trusts" concession will apply in relation to office buildings that have obtained a '5-Star Green Star' rating or a predicted '5.5 star' National Australian Built Environment Rating System rating. Retail centres and hotel accommodation that meet equivalent standards will also be eligible.
The government will review its eligibility criteria after three years. The aim is to ensure that qualifying projects are those attaining above-average levels of energy efficiency.
The new regime will apply where construction of the building commences on or after July 1, 2012. A consultation on the legislation is open until September 13.