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Corporate Collective Investment Vehicles

Since 1 July 2022, Australia has had a pooled investment structure called the corporate collective investment vehicle. It is like a “corporatised trust”. It was introduced to make Australia’s managed funds industry more internationally competitive and to attract offshore investment. It keeps many of the advantages of a trust, with added regulatory protections and the commercial benefits of a company.

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The regime sets out the regulatory and tax treatment of these vehicles. The Australian Taxation Office has published guidance on the tax treatment, including Law Companion Ruling 2024/1, which was finalised in October 2024. Anyone starting a fund should compare this structure with the established trust-based alternative.

The law amends the Corporations Act 2001 to set out how these vehicles are established and operated. It works alongside the existing financial services rules.

The laws include additional protections for retail investors.

A corporate collective investment vehicle is a type of company used for collective investment. It is an alternative to the trust-based managed investment scheme. For each vehicle:

  • The company is limited by shares.
  • It must have a single corporate director (that is, the director must not be a natural person).
  • The corporate director must be a public company, with an Australian Financial Services Licence authorising its relevant functions.
  • For a retail vehicle, the corporate director’s board must have a majority of external directors.
  • The vehicle may not have any other officers.
  • Every vehicle must register with the Australian Securities and Investments Commission, called the regulator on this page, and meet certain basic requirements.
  • At registration, it must have at least one sub-fund, which has at least one member.
  • Within a vehicle, one or more sub-funds may be established. Each sub-fund’s registration with the regulator is a ‘standalone’ process.
  • The vehicle must register as retail or wholesale. If even one investor is retail, it must register as retail and comply with additional requirements designed to protect retail investors.

Because it is a company, it is generally subject to the ordinary rules of the Corporations Act, with some particular provisions. Most of the powers, rights, duties and characteristics of a company apply.

What Are the Advantages?

  • Global alignment: the structure is closer to the company-based funds used in other countries, so overseas investors find it easier to understand.
  • Flow-through tax: for tax purposes each sub-fund is treated as a trust, so income generally flows through to investors.
  • Flexible share capital: investors hold shares in a sub-fund, and capital can be structured more flexibly than in a unit trust.
  • Retail investor protections: additional requirements apply when any investor is a retail investor.
  • Listing: a vehicle can be listed on an Australian exchange.

The sub-fund structure lets a single vehicle offer multiple products and investment strategies. The law allows appropriate cross-investments between sub-funds, which supports strategies such as hedge fund and master-feeder structures.

What Has Changed Recently

The regulator has decided to raise the minimum net tangible assets that corporate directors of retail vehicles must hold. The change starts on 1 July 2027, and annual indexation follows. The same increase applies to responsible entities of registered managed investment schemes.

This page contains general information only. It does not take into account your objectives, financial situation or needs, and it is not financial product advice.

Frequently Asked Questions

It is a company used for collective investment and is an alternative to a trust-based managed investment scheme. Investors hold shares in one or more sub-funds, and the vehicle has a single corporate director.

The vehicle is a company limited by shares and is generally subject to company rules, with provisions specific to this fund structure. Each sub-fund is registered separately, while its tax treatment is designed to retain flow-through features.

Potential advantages include a company-based structure that is familiar to overseas investors, flexible share capital, multiple sub-funds, additional retail protections and the ability to list the vehicle on an Australian exchange.