Australia To Cut Tax For Trusts Holding 'Clean Buildings'
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
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