Revenue Minister Kelly O'Dwyer said the Passport would allow Australian funds managers to offer their products into Asia without having to go through duplicative approval processes in each economy.
"It will also mean that investors will be able to access many more investment opportunities in our region through funds that are offered in Australia," O'Dwyer said.
This second round of consultation will enable legislation to be in place in the first half of 2018. Japan, Korea, New Zealand and Thailand are also implementing the Passport.
"CCIVs will increase the competitiveness of Australia's managed funds industry by aligning Australia's legal funds structures with those found in the rest of the world," O'Dwyer said.
The Australian funds market currently uses unit trusts whereas the rest of the world generally uses corporate and limited partnership investment vehicles.
The proposed tax framework for the new CCIV has been designed to broadly align with the attribution tax regime for managed investment trusts (MITs). One of the key features of the CCIV tax regime is capital gains tax relief for attribution MITs that convert into CCIVs and meet the eligibility requirements for attribution tax.
"This capital gains tax relief will ensure investors' balances are not reduced by tax at the time the attribution MIT moves into the CCIV regime," O'Dwyer said.
There will be further consultations on the regulatory aspects of the CCIV framework in the first half of 2018. The government will also consult in early 2018 on technical amendments to ensure that the new tax system for MITs, which was enacted in 2016, operates as intended.
The draft legislation and supporting materials are available on the Australian Treasury website.