On 18 December 2014, the Government reaffirmed its intention to introduce a practical Investment Manager Regime (IMR) and release draft legislation implementing Element 3 of the IMR reforms for public consultation in early 2015.
The IMR reforms remove tax impediments to investing in Australia in order to attract foreign investment to Australia and promote the use of Australian fund managers.
These draft amendments extend the IMR concession to cover investments in Australian assets (excluding real property) that are of a portfolio nature and broaden the 'widely held' test. Foreign entities will be eligible for the IMR concession if they directly invest in Australia or invest via an Australian fund manager.
These amendments also simplify the operation of the existing regime and make technical changes to ensure that some entities are not inadvertently disadvantaged or excluded.