Timbercorp blames investment scheme tax for sales slump
Tuesday, 19/06/2007
Timbercorp has announced a slump in sales of nearly $20 million for its horticulture projects.
The investment company had forecast profit of $135 million by the end of September but says that figure is now tipped to come in at around $105 million.
Timbercorp manages almost 15,000 hectares of mango, avocado, citrus, almond and olive plantations.
Deputy chief executive Sol Rabinowicz says the Government's tax changes to managed investment schemes have had an impact.
"First of all we've faced some degree of regulatory uncertainty in terms of the suddenness of the tax office and government decision," he said.
"Secondly, we have had a lot of news around drought and rainfall and that required a lot more communication from us to increase the level of comfort of investors and thirdly we had the one-off superannuation opportunity where people are able to put a million dollars in their super fund."
A report from Horticulture Australia says managed investment schemes in horticulture do not have any tax advantages over other farms.
The independent report was funded by Agriculture Investment Managers of Australia, an industry alliance connected with managed investment schemes.
It says MIS investments have a commercial advantage because they can attract capital, offer better research and development and create jobs, but also increase input costs, like water, in local communities.
Horticulture Australia's John Webster says he wants the facts out there and that is what the report is about.
"The purpose of the independent study was so that any debate being held could be based on fact," he said.
"MIS's are a significant but small part of horticulture, they vary by industry, and the report identifies the potential postive and negative impacts on horticulture generally."
TIM Price at posting:
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