Region Group (RGN) has outlined the tax breakdown of its 6.9 cents per security distribution for the half year ended December 2025, clarifying implications for non-resident investors and withholding tax obligations.
- 6.9 cents per stapled security distribution declared for H1 FY26
- Region Retail Trust classified as a withholding MIT and elected AMIT status
- Fund payment component disclosed for non-resident withholding tax purposes
- Full year tax details to be provided in annual tax statement in August 2026
- Advisory for Australian resident investors to seek separate tax guidance
Distribution Announcement and Tax Status
Region Group (ASX – RGN) has released detailed tax components related to its half-year distribution for the period ending 31 December 2025. The company declared a distribution of 6.9 cents per stapled security, scheduled for payment around 30 January 2026. This announcement primarily serves custodians and intermediary investors managing non-resident security holders, providing clarity on withholding tax obligations.
Region Retail Trust, a key component of RGN’s stapled structure, has confirmed its status as a withholding Managed Investment Trust (MIT) under Australian tax law. Additionally, it has elected to be treated as an Attribution Managed Investment Trust (AMIT) for the 2026 income year. These classifications influence how income is attributed and taxed, particularly for non-resident investors who face withholding tax requirements.
Fund Payment and Tax Components
The distribution includes a 'fund payment' component of approximately 4.18 cents per security, which represents the net income of the trust excluding certain income types such as dividends and capital gains not related to Australian taxable property. This component is significant for non-resident withholding tax calculations under the Taxation Administration Act 1953.
Other taxable components, such as Australian-sourced interest income, are minimal, with only 0.048 cents per security reported. The remainder of the distribution is classified as non-taxable for withholding purposes. Investors are advised to seek professional tax advice to understand the implications fully, especially since Australian resident security holders should not rely on this announcement for their tax returns.
Looking Ahead and Investor Implications
Region Group will provide comprehensive tax details for the full financial year in its annual tax statement, expected around late August 2026. This forthcoming disclosure will offer further insights into the trust’s income components and tax treatment, which are crucial for both resident and non-resident investors.
For now, the announcement underscores the complexity of tax compliance for stapled securities structured as MITs and AMITs, reflecting ongoing regulatory requirements. Investors and custodians managing non-resident holdings should remain vigilant to these nuances to ensure accurate withholding and reporting.
Bottom Line?
As tax frameworks evolve, Region Group’s detailed disclosures highlight the importance of understanding distribution components for investor tax planning.
Questions in the middle?
- How might changes in Australian withholding tax rates affect future distributions for non-resident investors?
- Will Region Group’s AMIT election influence its distribution strategy or investor returns in FY27?
- What additional tax details will emerge in the full year statement due in August 2026?