myTax 2023 Forestry managed investment scheme deductions

Things to know

Complete this section if you made payments to a forestry managed investment scheme (FMIS).

Forestry managed investment scheme (FMIS) rules aim to encourage the expansion of commercial plantation forestry in Australia through the establishment and tending of new plantations for felling.

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

You are an initial participant if you meet all the following conditions:

• the scheme is a qualifying scheme
• you obtained your forestry interest from the forestry manager of the scheme
• the payment you make for your interest results in the establishment of trees.

You are a subsequent participant if you obtained your interest in an FMIS through secondary market trading.

A promoter, arranger or manager of an FMIS can't be a participant in that scheme.

Visit Initial participants to learn more about deductible initial and ongoing payments made under an FMIS, including if you did not hold your forestry interest for four years.

Visit Subsequent participants to learn more about deductible ongoing payments made under an FMIS. As a subsequent participant, you can't claim a deduction for the cost of acquiring your forestry interest.

You can't claim

You can't claim a deduction at this section for any of the following payments:

• payments for borrowing money
• interest or similar payments (such as a premium on repayment or redemption of a security, or a discount of a bill or bond)
• payments of stamp duty
• payments of goods and services tax (GST)
• payments that relate to transportation and handling of felled trees after the earliest of the following    
  • sale of the trees
  • arrival of the trees at the mill door
  • arrival of the trees at the port
  • arrival of the trees at the place of processing (other than where processing happens in-field)
• payments that relate to processing
• payments that relate to stockpiling (other than in-field stockpiling).

Completing this section

For each forestry interest you held in an FMIS as:

• an initial participant, you need to work out the amount of your deductible initial and ongoing payments made under an FMIS
• a subsequent participant, you need to work out the amount of your deductible ongoing payments made under an FMIS.

To personalise your return to show forestry managed investment scheme deductions, at Personalise return select:

• You had deductions you want to claim
• Other deductions

To show forestry managed investment scheme deductions, at Prepare return select 'Add/Edit' at the Deductions banner.

At the Forestry managed investment scheme deductions banner:

1. For each FMIS deduction, select Add, and    
   • enter Your description
   • enter the Amount.
2. Select Save.
3. Select Save and continue when you have completed the Deductions section.

You need to keep records of your involvement in an FMIS.

How to claim forestry managed investment scheme deductions when you lodge your return using myTax.