The Assistant Treasurer, Chris Bowen, announced the release of a Treasury discussion paper on proposed changes to the taxation treatment of disposals of investments by Managed Investments Trusts (MITs). The discussion paper is seeking comment on the design and implementation details of the changes to give effect to the Government's 2009-10 Budget decision to allow MITs to elect capital account treatment for gains and losses on disposal of their investments. The changes are to have effect from the 2008-09 and later income years. The changes will provide more taxation certainty for MITs and their investors that elect into the regime, Mr Bowen said.

Comments on the discussion paper are due by 10 July 2009.