Special Report: At the crossroads

With uncertainty surrounding the future of non-forestry managed investment schemes, promoters are expecting an increase in MIS project sales this year.

The federal government’s February 6 announcement that the ATO would cease issuing product rulings for non-forestry managed investment schemes after July 1, thereby removing the 100 per cent up-front tax deduction, sent shockwaves through the industry.

As the sector’s dominant player, agribusiness investment manager Great Southern Ltd is used to successfully weathering legislative storms. And the latest ATO tax challenge for non-forestry MIS will be no different, according to executive director and gene

The current decision to end managed investment scheme involvement in any industry bar forestry has significant repercussions for rural Australia, not to mention the legion of city-based corporate types who have lived well off this system.

Watershed Premium Wines managing director Geoff Barrett said his company would turn to foreign investment to continue in its push to plant a total 240 hectares of vineyards.

Managed investment scheme promoter Rewards Group Ltd believes its close alliance with listed investment company, The Ark Fund Ltd, will reduce the adverse impact of recent tax changes on its non-forestry projects.