Australia: Australian Government Abandons Introduction of Limited Partnership Structure
The Australian Government has delivered the 2022-23 Federal Budget. One of the announcements relevant to the investment funds industry was that the Government “has reviewed and will not proceed with … the 2016–17 Budget measure that proposed introducing a new tax and regulatory framework for limited partnership collective investment vehicles”.
In 2016 the then Government announced that a limited partnership vehicle would be available one year after the introduction of a corporate collective investment vehicle (CCIV) commenced.
After years of delays, the CCIV commenced on 1 July this year but now there will be no Australian limited partnership for the foreseeable future.
The Government has also announced a review of the regulatory framework for managed investment schemes. We understand that one of the areas of focus will be on property and property-like schemes and interaction with state law as well as the wholesale/retail distinction.