27 October 2025
2 min read
#Funds Management & Financial Services
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Australia has long been recognised as an attractive jurisdiction for alternative funds, with deep capital pools, a skilled financial services workforce, and a stable legal and geopolitical environment. In the latest Chambers & Partners Alternative Funds guide, we share our insights into the key legal, regulatory, and market developments shaping the sector.
Australia is among the top-ranking countries for median wealth per adult and offers a $4 trillion superannuation system, along with substantial capital sources accessible via wealth management and other product distribution channels. For investors, Australia provides a transparent legal system, stable governance, and strong potential for sustained economic growth.
Australia’s alternative funds sector benefits from established tax regimes, including via laws relating to attribution managed investment trusts and managed investment trusts. These structures provide tax efficiency and concessional withholding tax rates for eligible foreign investors, making them attractive for cross-border investment.
In the coming months, alternative fund managers can expect important regulatory changes. The Australian Securities and Investments Commission is expected to release the results of its consultation and review of Australia’s public and private markets. In addition, new anti-money laundering and counter-terrorism financing laws commencing in July 2026 will affect operational requirements for fund managers.
On the tax front, Australia has implemented earnings-based thin capitalisation rules from July 2023, significantly reducing interest deductibility for leveraged transactions. The ATO has also announced heightened scrutiny of managed investment trust restructures in March 2025, requiring stronger commercial rationale. Proposed foreign resident capital gains tax reforms targeting indirect land disposals were deferred to late 2025 but warrant monitoring whilst state stamp duty variations continue creating transaction cost unpredictability for cross-border investments and fund structures.
Success in this changing landscape will require fund managers to balance traditional alternative investment strengths with growing demands for transparency, liquidity and accessibility. Those who navigate these requirements while maintaining investment discipline and performance focus will be best positioned to capture the significant opportunities ahead.
For more insights, read the 2025 Chambers & Partners Alternative Funds guide for Australia here.
If you have any questions or would like more information about the legal framework and tax developments in this sector, please contact partners Andrew Stone and Dhanushka Jayawardena.
Disclaimer
The information in this article is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, we do not guarantee that the information in this article is accurate at the date it is received or that it will continue to be accurate in the future.
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