Warning on removal of MIS tax break
Independent agribusiness managed investment scheme (MIS) researcher Australian Agribusiness Group (AAG) has warned that the removal of upfront tax breaks in non-timber agricultural managed investment schemes would severely reduce investment in the sector.
Pointing to issues canvassed by the Joint Parliamentary Committee on Corporations and Financial Services, AAG director Tim Lee said the proposed tax changes would severely diminish the attractiveness of the non-timber schemes.
“Upfront tax deductions have played a critical role in helping to overcome perceived agribusiness risk related to the long-term nature of the investment,” he said.
“If tax benefits are removed, we are likely to see many retail investors move away from non-timber schemes, which can often take up to six or seven years to start producing net positive income.”
Lee claimed that such a fall off in investment would severely reduce inflows into the sector and potentially place regional jobs at risk.
“Implementation of the committee’s recommendations will also put non-timber MISs at a major disadvantage to competitor farmland investments,” he said.
AUTHOR
Mike Taylor
Recommended for you
Financial Services Minister Stephen Jones has shared further details on the second tranche of the Delivering Better Financial Outcomes reforms including modernising best interests duty and reforming Statements of Advice.
The Federal Court has found a company director guilty of operating unregistered managed investment schemes and carrying on a financial services business without holding an AFSL.
The Governance Institute has said ASIC’s governance arrangements are no longer “fit for purpose” in a time when financial markets are quickly innovating and cyber crime becomes a threat.
Compliance professionals working in financial services are facing burnout risk as higher workloads, coupled with the ever-changing regulation, place notable strain on staff.
