Investment Manager Regime (IMR) now in operation
On 25 June 2015, the legislation containing the third and final element of the Investment Manager Regime (IMR 3) received Royal Assent and is now enacted law. The law generally applies as from the 2015-16 income year (the year ended 30 June 2016), although taxpayers may elect to apply certain provisions in prior years.
Non-Australian residents would be able to qualify for the IMR exemption for an income year either by investing directly in Australia (direct IMR concession) or investing in Australia via an Australian fund manager (indirect IMR concession).
While the concessions are aimed at foreign funds, the indirect IMR concession also provides significant opportunities for Australian fund managers.
So, what do funds and fund managers need to be aware of under the new law?