The Australian Taxation Office (ATO) has admitted it will be challenged to implement all of the proposed changes to agricultural managed investment schemes before June 30.
ATO assistant commissioner Gary Hammersley told an agribusiness conference in Melbourne that the challenge was to get the legislation and the new product ruling definitions written and through a consultation period by the end of the financial year.
“We have been meeting (agribusiness) industry bodies and players to talk about how we administer the proposed changes,” he said.
“We see that there will be a test case for forestry schemes to see how the courts view the changes to product rulings.”
For non-forestry schemes, he confirmed it would be unlikely that any new product rulings for these schemes would be issued after July 1, but he did expect there to be a transition period.
“We have written to the top 24 schemes, and their comments have been passed to the tax commissioner to look at a transition period,” he said.
“I think the consensus of opinion is there will be a transition period, but it is up to the commissioner as to how long that will be.”
It is expected that Treasury will announce any changes to the proposed tax treatment of non-forestry schemes next month, and this will then be subject to a consultation period.
Orchard Funds Management head of capital transactions Stephen Lynch said there was a myth that the taxation changes marked the end of horticulture agribusiness schemes.
“There is life after the changes, as the projects are about investment, and that has helped to grow this sector,” he said.
