Complete this section if you made payments to a forestry managed investment scheme (FMIS).
You may be able to claim a deduction at this section for payments made to an FMIS if you:
- currently hold a forestry interest in an FMIS, or held a forestry interest in an FMIS during the income year, and
- have paid an amount to a forestry manager of an FMIS under a formal agreement.
You can only claim a deduction at this item if the forestry manager has advised you that the FMIS satisfies the 70% direct forestry expenditure rule in Division 394 of the Income Tax Assessment Act 1997.
If you are an initial participant, you cannot claim a deduction if you disposed of your forestry interest in an FMIS within four years after the end of the income year in which you first made a payment.
However, the deduction will be allowed if the disposal occurred because of circumstances outside your control, provided you could not have reasonably foreseen the disposal happening when you acquired the interest. Disposals that would generally be outside your control include compulsory acquisition, insolvency of you or the scheme manager, or cancellation of the interest due to fire, flood or drought.
For more information, see Forestry managed investment schemes and Forestry managed investment scheme deduction.
If you are a subsequent participant, you cannot claim a deduction for the amount paid for acquiring your interest. You can only claim a deduction for your ongoing payments.
Completing this section
You need to know whether you are an initial participant or a subsequent participant.
- Work out the total amount of your deductible:
- initial and ongoing payments made under an FMIS, if you are an initial participant, or
- ongoing payments made under an FMIS, if you are a subsequent participant.
- For each FMIS deduction, select Add and enter information into the corresponding fields.
- Select Save.
- Select Save and continue.