The 2021-22 Federal budget (Budget) announcement reaffirmed the long-awaited introduction of the Corporate Collective Investments Vehicle (CCIV) regime. It seeks to introduce an Australian structure that is in alignment with the international standards for foreign investment. In practice, the CCIV would focus on the process of domestic fund managers offering investment portfolios and opportunities through a company-type structure, but with a transparent tax treatment. By reducing operating costs and compliance requirements, the intended impact of the regime is said to increase the nation’s cross-border financial services trade and improve the competitiveness and efficiency of the financial sector and to facilitate institutional foreign investment.
In 2010 the Commonwealth Government announced a review of tax arrangements applying to the CCIV regime. A report outlining the findings of the review was released in 2015, with a view to revise and develop further legislation addressing the deficiencies of the regime in the coming years and through expansion of the Budget. Over the past few years, various rounds of draft legislature have been released with calls to industry professionals and community members to make submissions as to improvements.
In the 2021-22 Budget released on 11 May 2021, it was announced that the commencement date of the CCIV has been postponed to 1 July 2022, as opposed to the earlier date of 1 July 2018 reported in the 2016-17 Budget. Draft legislation is yet to be released.