One of the requirements to obtain a tax deduction for an investment in a forestry managed investment scheme where you are an initial investor is that a CGT event must not occur with respect to your forestry interest for a period of 4 years.

This has created a problem for investors where forestry schemes have collapsed through no fault of the investor within that 4 year period.

Therefore a Bill has been introduced to Parliament to amend the income tax laws so that the requirement to hold your forestry investment for 4 years does not apply if the CGT event happens because of circumstances outside your control and when you acquired the forestry interest, you could not reasonably have foreseen the CGT event happening.

This amendment will ensure that if a forestry MIS fails for reasons genuinely outside an investor’s control it will not lose any deduction previously claimed.