Is a forest a good investment?

Is a forest a good investment?

Forestry is one of the most secure commodities in today’s markets – tangible, safe and growing even in the worst financial climates. It could be a part of your investment portfolio.

Can you invest in forestry?

It’s a relatively simple and very tangible investment. It has delivered impressive performance – better than most other asset classes – over one, five, 10 and 25 years and is largely uncorrelated to other assets. It offers valuable tax reliefs – no income or capital gains tax, plus inheritance tax relief.

Does Australia have a forestry industry?

With a strong policy framework in place, government and industry continue to address issues affecting the profitability and sustainability of Australia’s forest industries. In 2018–19, the forest industry generated $23.9 billion of sales and service income and employed around 52,000 people.

Can you make money from forestry?

Any profits or gains from forestry which is managed on a commercial basis with a view to making profit is exempt from income tax and corporation tax, but USC and PRSI are payable. If you sell the forestry you will be liable for CGT, which will be chargeable on the lands only, not on the sale of the trees.

Who owns the Forestry Corporation?

Forestry Corporation is a state-owned corporation that has been appointed to manage environmental conservation, community access, tourism, fire, land management and renewable timber production across two million hectares of public land on behalf of the NSW Government.

How much forest is left in Australia?

Australia has 125 million hectares of forest, which is 16 per cent of Australia’s land area. This is about 3 per cent of the world’s forest area, and the seventh-largest reported forest area worldwide….Forest types.

Forest type Total forest area Proportion of total forest area (%)
(‘000 hectares)
Total forest 124 734 100

How much is the timber industry worth in Australia?

The Forest and Wood Products industry generated $23.1 billion in revenue and contributed $7.2 billion to Australian gross domestic product (GDP) in the 2019–20 financial year.

Is forestry considered farming?

Forest farming is the cultivation of high-value crops under the protection of a managed tree canopy. In some parts of the world, this is called multi-story cropping and when used on a small scale in the tropics it is sometimes called home gardening.

Do you pay inheritance tax on Woodland?

Special tax treatment is given for commercial woodlands – the main advantage being it is free of inheritance tax (IHT) – something that is often the main attraction for a new investor.

When did the timber industry start in Australia?

By 1905, more than three million hectares of land was in timber reserves. The first attempt at a commercial pine plantation was made at Tuncurry State Forest on the mid-north coast in 1912. Eucalypt plantations followed in 1939-40 at Walaroo and Whian Whian State forests on the north coast.

How much of Australia is untouched?

CANBERRA (Reuters) – More than 40 percent of Australia, an area the size of India, remains untouched by humans, making the country as critical to the world’s environment as the Amazon rainforests, a study said on Wednesday.

Can Australia be forested?

Information for this overview ​is drawn from Australia’s State of the Forests Report 2013. Australia has 125 million hectares of forest, which is 16 per cent of Australia’s land area. This is about 3 per cent of the world’s forest area, and the seventh-largest reported forest area worldwide.

Why invest in sustainable real assets new forests?

Investing in Sustainable Real Assets New Forests is a sustainable real assets investment manager offering leading-edge strategies in forestry, land management, and conservation. Sustainable timberland investment in Australia and New Zealand. Sustainable forestry in emerging markets of Southeast Asia.

Why invest in NSW forest products?

As well as significant domestic demand, international demand for NSW forestry products has grown rapidly, to be further boosted by recent Free Trade Agreements with Asia. Investment in plantation forests is needed to meet future industry demand from the wood and paper processing industries.

What is AXA’s investment in the Australian Forestry market worth?

The transaction of the pine plantations straddling Victoria and South Australia by the investment house is one of the largest investments into the Australian forestry market by value in over a decade. The deal was orchestrated through AXA IM Alts, the alternative investment asset manager that has roughly $260 billion under its management.

What are new forests’assets?

Our assets include sustainable timber plantations, rural land, and conservation investments related to ecosystem restoration and protection. New Forests focuses on managing our clients’ assets for a future in which landscapes will encompass both production and conservation values.