The investor relies on the promoter's efforts for any profit. The nature and extent of the promoter s services and efforts may qualify the scheme as a managed investment scheme. If so, it must comply with the Act. This list is not exhaustive and whether a particular scheme is a managed investment scheme will depend on the terms and conditions of the contract. Schemes that offer no more than the sale of livestock are not prescribed interests.
Investors usually lease some land that is used to grow the tree or plant.
The promoter or manager is responsible for planting, maintaining, harvesting and sale of the crop. These schemes are generally managed investment schemes. Agricultural prescribed interest schemes are often tax driven, offering the investor a substantial tax deduction in the first year and smaller deductions during the project s life. These schemes are usually marketed towards the end of the financial year. Potential investors should seek their own taxation advice on whether stated tax benefits will apply to them.