12/06/2008 - 12:03

Kimberley Timber first in ATO ruling

12/06/2008 - 12:03

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The Kimberley Timber Corporation has become the first Australian company to attain a tax office product ruling that will open the door for super funds to invest in environmentally friendly products.

Kimberley Timber first in  ATO ruling

The Kimberley Timber Corporation has become the first Australian company to attain a tax office product ruling that will open the door for super funds to invest in environmentally friendly products.

The African mahogany plantation manager achieved the ruling under the new stricter legislation governing Forestry Managed Investment Schemes (MIS).

Kimberley Timber managing director Rick Ferdinands said that giving investors more tax certainty and flexibility in their investment decisions was paramount.

In addition, these new laws allow Super Funds to contribute to forestry projects for the first time. Mr Ferdinands said that it encourages Super Funds to participate in more environmentally friendly projects under a sound investment structure.

The object of the tax commissioner's new legislation, Division 394 of the Income Tax Assessment Act 1997, "...is to encourage the expansion of commercial plantation forestry in Australia through the establishment and tending of new plantations... and allowing secondary market trading of interests in such schemes, while providing tax certainty for investors."

This new legislation provides more options for individuals and super funds within a well designed structure.

Mr Ferdinands said the unique benefit of applying the new laws to this project is that for the first time super funds can now invest in a forestry project. Together with secondary market provisions investors can sell after 4 years and retain their full tax deduction.

Kimberley Timber currently holds 300 hectares under African mahogany plantings in the Ord River Irrigation Area through the acquisition of a mature plantation in 2005.

It currently has an option to purchase more land across the state's north and into the Northern Territory, which would take its land holding to just under 6,000 hectares.

Managing director Rick Ferdinands has previously said the company holds the largest commercial ready mahogany plantation in Australia, and is the only one doing commercial trials of African mahogany.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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