SURVEYOR NINE
As someone who was intimately involved in forestry and MIS companies I feel that I should point out that the whole MIS industry is based on a curious fact.
This fact is that the MIS industry has managed to convince the ATO that the tax deductible costs of establishing a hectare of timber are about double the actual costs.
So the investor actually pays for the establishment plus all or part of the land cost. Given MIS companies normally finance the investors this is of no benefit to the MIS company for the first crop rotation as the land has to be paid for; the super profits come on the second rotation – being the gap between the charge to the investor and the actual costs.
This is one of the dark little secrets behind Gunns push for its pulp mill.
Also if investors really thought about it they are only deferring the tax bill – which is why it is known as a Rumpelstiltskin investment.
