From hlb.com.au: Trusts in Australia are commonly used vehicles for collective investment and are generally considered ‘flow-through’ entities for tax purposes, requiring withholding tax on distributions to foreign beneficiaries.

MITs offer concessional tax rates to attract foreign investment, but the Australian Taxation Office is increasing scrutiny on MIT structures to prevent misuse of these tax benefits.

Recent government announcements clarify that trusts owned by widely held investors will still qualify for MIT concessions, emphasizing the need for legitimate commercial rationale in any restructuring of MITs.