Income Tax Assessment Act 1997
CHAPTER 3
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SPECIALIST LIABILITY RULES
PART 3-45
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RULES FOR PARTICULAR INDUSTRIES AND OCCUPATIONS
Division 394
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Forestry managed investment schemes
Direct forestry expenditure under a *forestry managed investment scheme means:
(a) an amount paid under the scheme that is attributable to establishing, tending, felling and harvesting trees; and
(b) notional amounts reflecting the *market value of goods, services or the use of land, provided by the *forestry manager of the scheme, for establishing, tending, felling and harvesting trees. EXAMPLES
Treat *direct forestry expenditure covered by paragraph (1)(b) as paid annually for each income year of the *forestry manager of the scheme based on the *market value of the goods, services, or the use of the land. Treat the day on which it is paid as:
(a) unless paragraph (b) or (c) applies - 1 January in the income year; or
(b) if the first time an amount is paid under the scheme is later than the first day of the income year - the last day of the income year; or
(c) if the scheme comes to an end on a day before the end of the income year - that day. Exclusions - general 394-45(3)
However, direct forestry expenditure under the scheme does not include amounts paid under the scheme to the extent that they relate to any of the following:
(a) marketing of the scheme;
(b) insurance, contingency funds or provisions (other than provisions for employee entitlements);
(c) financing;
(d) lobbying;
(e) general business overheads (but not overheads directly related to forestry);
(f) subscriptions to industry bodies;
(g) commissions for financial planners or financial advisers;
(h) compliance with requirements related to the structure and operations of the *forestry manager of the scheme;
(i) supervision and auditing of contracts, other than direct supervision of direct forestry activities (such as establishing trees for felling);
(j) legal fees relating to any matter mentioned in this subsection. Exclusions - expenditure after harvest etc. 394-45(4)
Also, direct forestry expenditure under the scheme does not include amounts paid under the scheme to the extent that they relate to any of the following:
(a) transportation and handling of felled trees that happens after the earliest of the following:
(b) processing;
(c) stockpiling (other than in-field stockpiling);
(d) marketing and sale of forestry produce.
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SECTION 394-45
Direct forestry expenditure
394-45(1)
Direct forestry expenditure under a *forestry managed investment scheme means:
(a) an amount paid under the scheme that is attributable to establishing, tending, felling and harvesting trees; and
(b) notional amounts reflecting the *market value of goods, services or the use of land, provided by the *forestry manager of the scheme, for establishing, tending, felling and harvesting trees. EXAMPLES
Example 1:Notional amounts reflecting the value of the use of land owned by the forestry manager that is provided for establishing, tending, felling and harvesting trees.
Example 2:394-45(2)Notional amounts reflecting the value of tree felling services provided by the forestry manager.
Treat *direct forestry expenditure covered by paragraph (1)(b) as paid annually for each income year of the *forestry manager of the scheme based on the *market value of the goods, services, or the use of the land. Treat the day on which it is paid as:
(a) unless paragraph (b) or (c) applies - 1 January in the income year; or
(b) if the first time an amount is paid under the scheme is later than the first day of the income year - the last day of the income year; or
(c) if the scheme comes to an end on a day before the end of the income year - that day. Exclusions - general 394-45(3)
However, direct forestry expenditure under the scheme does not include amounts paid under the scheme to the extent that they relate to any of the following:
(a) marketing of the scheme;
Example:Advertising, sales, sponsorship and entertainment.
(b) insurance, contingency funds or provisions (other than provisions for employee entitlements);
(c) financing;
(d) lobbying;
(e) general business overheads (but not overheads directly related to forestry);
(f) subscriptions to industry bodies;
(g) commissions for financial planners or financial advisers;
(h) compliance with requirements related to the structure and operations of the *forestry manager of the scheme;
Example:Product design and preparation of product disclosure statements.
(i) supervision and auditing of contracts, other than direct supervision of direct forestry activities (such as establishing trees for felling);
(j) legal fees relating to any matter mentioned in this subsection. Exclusions - expenditure after harvest etc. 394-45(4)
Also, direct forestry expenditure under the scheme does not include amounts paid under the scheme to the extent that they relate to any of the following:
(a) transportation and handling of felled trees that happens after the earliest of the following:
(i) sale of the trees;
(ii) arrival of the trees at the mill door;
(iii) arrival of the trees at the port;
(iv) arrival of the trees at the place of processing (other than where processing happens in-field);
(b) processing;
(c) stockpiling (other than in-field stockpiling);
(d) marketing and sale of forestry produce.
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