What is a PIE?

Introduction

A portfolio investment entity (PIE) is a new type of entity, such as a managed fund that invests the contributions from investors in different types of investments.

New tax rules have allowed eligible entities to become PIEs from 1 October 2007.

Eligible entities that elect to become a PIE will generally pay tax on investment income based on the prescribed investor rate (PIR) of their investors, rather than at the entity's tax rate. Companies have a PIR of 0%.

Eligible entities

Entities that meet the eligibility requirements can elect to become a PIE if they are a:

• managed fund, such as a:
  • unit trust, or
  • superannuation fund
• company
• benefit fund
• life fund, or
• group investment fund.

To find out more about the types of PIEs, please read Portfolio investment entities (PIE).

Investing in a PIE

We cannot comment or provide advice on investment schemes. You should talk to your tax agent or financial adviser.

Record-keeping requirements

All records relating to your investments must be kept for at least seven years.

For more help

• For a full explanation of the new PIE rules please read:
  
  
• Tax rules for portfolio investment entities
• New tax rules for portfolio investment in shares.
• Remedial amendments to the portfolio investment entity tax rules.

Date published: 23 Feb 2010

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