A move to give a tax cut to investment trusts responsible for green buildings has passed the House of Representatives - just five months after the government doubled the relevant tax rate.
Legislation that passed on Tuesday lowers the final withholding tax rate to 10 per cent on payments made by eligible managed investment trusts that only hold newly constructed and energy-efficient commercial buildings.
The changes relate to fund payments made to a foreign resident.
The buildings, constructed after July 1, 2012, must obtain and maintain either a five-star Green Star rating or a 5.5-star National Australian Built Environment Rating System rating to be eligible for the tax break.
In June the government lifted this withholding tax rate from 7.5 to 15 per cent, as part of its 2012/13 budget measures.
But the Greens were concerned the increase would discourage investment in energy-efficient buildings.
Greens deputy leader Adam Bandt told the lower house the latest change was a “win for the environment”.
The opposition slammed Labor for having made the initial hike but supported the new legislation, saying at least it was a tax cut for some.
Assistant Treasurer David Bradbury said the tax rate was still lower than the 30 per cent it had been when Labor took power in 2007.
The Tax Laws Amendment (Clean Building Managed Investment Trust) Bill 2012 now goes to the Senate.
