Warning on removal of MIS tax break
Independent agribusiness managed investment scheme (MIS) researcher Australian Agribusiness Group (AAG) has warned that the removal of upfront tax breaks in non-timber agricultural managed investment schemes would severely reduce investment in the sector.
Pointing to issues canvassed by the Joint Parliamentary Committee on Corporations and Financial Services, AAG director Tim Lee said the proposed tax changes would severely diminish the attractiveness of the non-timber schemes.
“Upfront tax deductions have played a critical role in helping to overcome perceived agribusiness risk related to the long-term nature of the investment,” he said.
“If tax benefits are removed, we are likely to see many retail investors move away from non-timber schemes, which can often take up to six or seven years to start producing net positive income.”
Lee claimed that such a fall off in investment would severely reduce inflows into the sector and potentially place regional jobs at risk.
“Implementation of the committee’s recommendations will also put non-timber MISs at a major disadvantage to competitor farmland investments,” he said.
AUTHOR
Mike Taylor
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