Tree companies have hit back at criticisms government tax arrangements are unfairly fuelling the booming plantation industry in areas such as the NSW North Coast, Southern Tablelands and NSW’s south eastern high country.
Farmers and community leaders, concerned about the social, environmental and economical repercussions of the large amounts of land, most of it former cattle country, being put over to timber plantations, have claimed the tax breaks are "propping up" the industry .
However, the so-called 'tax incentives' are actually just standard tax deductions available to all businesses in Australia for non-capital expenditure in the year the business incurs it, chief executive of the Treefarm Investment Managers Association Alan Cummine said.
"The costs to establish, manage and harvest the plantation and transport its produce to mill are all tax deductible," he said.
* Extract from a full report to appear in The Land, October 9 edition.
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