Australian Tax Office Promotes Forestry Investment Products

by Mary Swire, Tax-News.com, Hong Kong

02 October 2001

After a severe condemnation of mass-market timber investment schemes by Australian tax office commissioner, Michael Carmody, many investors stayed clear of other legitimate products which has resulted in a considerable reduction of forest plantings across the country.

In a bid to redress the balance Mr Carmody has released a statement issuing a 'tax guarantee' on a range of agricultural investment products. Although they include timber he is careful not to dwell on its investment appeal but does describe timber as a safe investment.

Mr Carmody referred to a range of timber investments that allow the investor to obtain a tax deduction on the investment with the return relying on forest growth and sale of the timber.

In the statement Mr Carmody confirmed that investors will be entitled to tax benefits with a valid Tax Office Product Ruling. He said: 'Managed investments, including in the forestry industry, that have a Product Ruling are quite distinct from the mass-marketed, tax-abusive schemes that the tax office has taken action against.'

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