Skip to Content

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.

Income earned through a PIE will generally not affect investors' entitlements to working for families tax credits, or their student loan or child support obligations.

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
  • defined benefit fund
  • portfolio investment-linked 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

You don't have to keep records for excluded income.

If the PIE income is not excluded income because:

  • it has been taxed at a zero rate, or
  • you have given the PIE a rate lower than your correct rate

then you must keep your records relating to that income for seven years.

For more help

 


Date published: 11 May 2008

Back to top


Individuals & Families

Businesses

Not for profit groups

Non-residents & visitors