The recently enacted definition of a MIT opens the door for a number of private equity funds to qualify as a MIT and make a 'capital account' election, providing certainty of taxation treatment to those funds and their investors. However, for those funds that do not qualify there will be continuing uncertainty. In addition, further changes may occur following the Government's upcoming review of the taxation treatment of collective investment vehicles.

This article by Toby Eggleston of Greenwoods & Freehills looks at applying the definition of a Managed Investment Trust (MIT) to PE funds and how that definition may impact the structure of existing and future PE funds in Australia.