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23 Forestry managed investment scheme income 2026

Complete question 23 to include income from forestry managed investment schemes.

Published 30 May 2026

Things you need to know

Declare at this question income from forestry management investment schemes (FMIS). A forestry interest in an FMIS is a right to benefits produced by the scheme (whether the right is actual, prospective or contingent and whether it's enforceable or not).

An FMIS can have 2 different types of investors – initial participants and subsequent participants.

You're an initial participant in an FMIS if you meet the following conditions:

  • you obtained your forestry interest in the FMIS from the forestry manager of the scheme
  • your payment to obtain the forestry interest in the FMIS results in the establishment of trees.

You're a subsequent participant if you're not an initial participant.

A forestry manager of an FMIS is the entity that manages, arranges or promotes the FMIS.

The amount of your total forestry scheme deductions is the total of each amount that you can deduct or have deducted for each income year that you hold your forestry interest. For more information on amounts you can deduct, see D14 Forestry managed investment scheme deduction 2026.

The amount of your incidental forestry scheme receipts is the total of each amount that you received under the scheme in each income year that you hold your forestry interest, other than amounts you received because of a capital gains tax (CGT) event. A CGT event includes a sale of all or part of a forestry interest or harvest proceeds.

If you didn't receive income from an FMIS, go to question 24 Other income 2026.

Completing your supplementary tax return

Show at question 23 – label A the total income from forestry interests you hold in an FMIS from the following activities:

Initial participants

Complete the following if you're an initial participant.

Thinning receipts

If you received thinning proceeds from your forestry interest, include the actual amount you received in the total amount at question 23 – label A.

Sale and harvest receipts: forestry interest you no longer held

Include the market value of the forestry interest at the time of the CGT event in the total at question 23 – label A, if both of the following applies:

  • a CGT event happened, and you no longer hold your forestry interest as a result of the CGT event (for example, because you sold the interest to another person, or you received harvest proceeds)
  • you either
    • claimed a deduction
    • can claim a deduction
    • would be entitled to claim a deduction but for a CGT event happening within 4 years after the end of the income year in which you first pay an amount under the FMIS.

Sale and harvest receipts: forestry interest you still held

Include the amount by which the market value of your forestry interest is reduced in the total at question 23 – label A, if both of the following applies:

  • a CGT event happened, and you still hold your forestry interest (for example, because you sold part of your interest or there was a partial harvest)
  • you either
    • claimed a deduction
    • can claim a deduction
    • would be entitled to claim a deduction but for a CGT event happening within 4 years after the end of the income year in which you first pay an amount under the FMIS.

Subsequent participants

Complete the following if you're a subsequent participant.

Thinning receipts

If you received thinning proceeds from your forestry interest, include the actual amount you received in the total at question 23 – label A.

Sale and harvest receipts: forestry interest you no longer held

Include the amount worked out below in the total at question 23 – label A, if all of the following applies:

  • a CGT event happened
  • you no longer hold your forestry interest as a result of the CGT event (for example, you sold your interest or you received harvest proceeds)
  • in relation to the forestry interest, you either
    • claimed a deduction
    • can claim a deduction
    • could have deducted an amount if you had paid the amount under the FMIS.

Work out the lesser of the following 2 amounts:

  • the market value of the forestry interest (at the time of the CGT event)
  • the amount (if any) by which the total forestry scheme deductions exceeds the incidental forestry scheme receipts.

Include the lesser of the 2 amounts above in the total at question 23 – label A.

Sale and harvest receipts: forestry interest you still held

Do all of the following apply?

  • A CGT event happened.
  • You still hold your forestry interest (for example because you sold part of your interest or there was a partial harvest).
  • In relation to the forestry interest, you either
    • claimed a deduction
    • can claim a deduction
    • could have deducted an amount if you had paid the amount under the FMIS.

If you answer:

Work out the lesser of the following 2 amounts:

  • the market value of the forestry interest (at the time of the CGT event)
  • the amount (if any) by which the total forestry scheme deductions exceed the incidental forestry scheme receipts ('net deductions').

Use the lesser of the 2 amounts above in the following formula:

lesser of 2 amounts above

multiplied by

the decrease, (if any) in the market value of the forestry interest – as a result of the CGT event)

divided by

the market value of the forestry interest just before the CGT event

Include at question 23 – label A the amount you work out using the above formula.

In a future income year (a year in which you receive further proceeds from a harvest or the sale of your forestry interest), disregard the amount of the 'net deductions' that has already been included at label A.

For more information on the CGT treatment of your forestry interest, see the Guide to capital gains tax 2026.

Example 1: sale receipts: forestry interest no longer held

Julian is a subsequent participant in an FMIS. He sold his forestry interest at the market value of $20,000. The sale of his forestry interest is a CGT event. His original cost base is $14,000.

In the time that Julian held his forestry interest, he claimed $4,000 in deductions (his 'total forestry scheme deductions') for lease fees, annual management fees and the cost of felling that he paid to the forestry manager. In the same period, Julian received $1,500 from thinning proceeds (his 'incidental forestry scheme receipts').

Julian writes $2,500 (that is, $4,000 − $1,500) at question 23 – label A, because this amount is less than the market value of his forestry interest ($20,000) at the time of the CGT event.

CGT notes:

  • Julian will take the amount he includes at question 23 – label A into account when working out the amount to include in his question 18 Net capital gain.
  • The capital gain would be $3,500, that is, capital proceeds of $20,000 less cost base of $16,500 (made up of $14,000 plus $2,500 that he includes in his assessable income).
Example 2: harvest receipts: forestry interest still held

John is a subsequent participant in an FMIS. He receives harvest proceeds over 2 income years. He received his first harvest payment of $5,000 in 2025–26.

The market value of John's forestry interest was $20,000 just before he received his first harvest payment (which is a CGT event). After John received this first harvest payment, the market value of his forestry interest is reduced to $15,000. His original cost base is $14,000.

In the time that John held his interest, he claimed $4,000 in deductions (his 'total forestry scheme deductions') for lease fees, annual management fees and the cost of felling that he paid to the forestry manager. In the same period, John received $1,500 from thinning proceeds (his 'incidental forestry scheme receipts').

Step 1

The market value of the forestry interest (at the time of the CGT event) is $20,000.

The amount by which the total forestry scheme deductions exceed the incidental forestry scheme receipts is $2,500 (that is, $4,000 − $1,500).

The amount to use in Step 2 is $2,500.

Step 2

$2,500 × $5,000 ÷ $20,000 = $625

Step 3

John writes $625 at question 23 – label A.

CGT note: John disposed of 25% of his forestry interest. John will take the amount at label A into account when working out the amount to include in his question 18 Net capital gain.

For 2025–26 the capital gain would be $875, that is, capital proceeds of $5,000 less apportioned original cost base of $4,125 (made up of $3,500 (25% of $14,000) plus $625 that he includes in assessable income).

Future year note: When determining the amount to include in Step 2 for any future income year in which John receives harvest proceeds or sells his forestry interest, the $625 is disregarded. This is because John already included this amount in his assessable income in the 2025–26 year.

End of example

Where to go next

QC106847