Item 10 - Forestry managed investment scheme income (trust)

Show at label Q the total income from all the following forestry interests that the trust holds in its FMIS. The amount shown will depend on the following points:

Harvest and sales are CGT events because these events result in the Trust no longer holding some or all of its forestry interest.

Definitions

A Trust is an Initial Participant of an FMIS, if the Fund:

obtained its FMIS from the forestry manager of the scheme
the payment to obtain the forestry interest in an FMIS results in the establishment of trees.

A Trust is a Subsequent Participant if it obtains an interest in a forestry managed investment scheme through secondary market trading. This means it acquired its interest other than as an initial participant, usually by purchasing that interest from an initial participant in the scheme.

The Forestry Manager of an FMIS is the entity that manages, arranges or promotes the FMIS.

A Forestry Interest in an FMIS is a right to benefits produced by the scheme (whether the right is actual, prospective or contingent and whether it is enforceable or not).

The amount of the Trust's Total Forestry Scheme Deductions is the total of all the amounts that it can deduct or has deducted for each income year that it held its forestry interest.

The amount of the Trust's Incidental Forestry Scheme Receipts is the total of all the amounts it received from the FMIS in each income year that it held its forestry interest, other than amounts received because of a capital gains tax (CGT) event that is a sale or a harvest.

For an initial participant in an FMIS

If the trust is an initial participant, it cannot claim a deduction if it has disposed of its forestry interest in an FMIS within four years after the end of the income year in which it first made a payment. However, the deduction will be allowed if the disposal occurs because of circumstances outside of the trust's control, provided the trustee could not have reasonably foreseen the disposal happening when the interest was acquired.

Disposals that would be outside your control include compulsory acquisition, insolvency of the trust the scheme manager, or cancellation of the interest due to fire, flood or drought. Refer to Forestry Managed Investment Schemes - minor amendments to holding period rules.

If the Trust received thinning proceeds from its forestry interest, include the actual amount received at this label.
Sale and harvest receipts - forestry interest no longer held. If the Trust ceased holding its forestry interest because of a CGT event (because it sold its interest or it received harvest proceeds), include the market value of the forestry interest at the time of the CGT event at this label.
Sale and harvest receipts - forestry interest still held. If a CGT event happened and the Trust still held its forestry interest (because it sold part of its interest or there was a partial harvest), include the amount by which the market value of the forestry interest was reduced at this label.

For a subsequent participant in an FMIS

Thinning receipts. If the Trust received thinning proceeds from its forestry interest, include the actual amount received at this label.
Sale and harvest receipts - forestry interest is no longer held. If the Trust ceased holdings its forestry interest as a result of a CGT event (because it sold its interest or it received harvest proceeds), include at this label the lesser of the following two amounts:
1. the market value of the forestry interest (at the time of the CGT event), or
2. the amount (if any) by which the total forestry scheme deductions exceeded the incidental forestry scheme receipts.
Sale and harvest receipts - forestry interest still held. If a CGT event happened and the Trust still held its forestry interest (because it sold part of its interest or there was a partial harvest), work out the following amounts:
1. the market value of the forestry interest (at the time of the CGT event), or
2. the amount (if any) by which the total forestry scheme deductions exceeded the incidental forestry scheme receipts.
Lesser of two amounts above X
The decrease (if any) in the market value of the forestry interest (because of the CGT value)
The market value of the forestry interest just before the CGT event

Include the amount calculated using the above formula at this label.

Total forestry scheme deductions are the total of each amount that you can or have deducted for each income year that you have held your forestry interest. Click the following link for information on amounts you can deduct Item 17 - Forestry managed investment scheme deductions (Trust Returns).

Incidental forestry scheme receipts are the total of each amount that you have received under the scheme in each income year that you have held the forestry interest, other than amounts received because of the CGT event mentioned above.

For CGT purposes, the cost base and reduced cost base of your forestry interest are increased by the amount included in assessable income under this sub-heading ‘Sale and harvest receipts - forestry interest is no longer held’, which you include at this label. You will then use the adjusted cost base or reduced cost base to calculate the amount of any capital gain or capital loss that you have made because of the CGT event.

Lesser of two amounts above X	The decrease (if any) in the market value of the forestry interest (because of the CGT value)
	The market value of the forestry interest just before the CGT event