|
• |
The 2011 Project structure has no bank debt and taxation benefits under ATO Product Ruling PR
2011/10
can be delivered; |
|
• |
Almond Investors Limited does not need to make sales in 2011 to remain viable; |
|
• |
12 months (interest free) Terms Payment Arrangements are available; |
|
• |
A Joint Venture Arrangement allows a SMSF to contribute to the annual costs; |
|
• |
Worldwide demand for almonds continues to be strong; |
|
• |
A proven Management Team with more than 20 years’ experience managing large scale Almond Orchards and a successful track record delivering on returns. |
A Unique Agribusiness
Investment
An opportunity to own the Almond Orchard, become a
Grower and participate in the expanding and
profitable Australian Almond Industry.
THE WORLD ALMOND INDUSTRY
STRONG WORLD DEMAND
|
• |
Strong demand for almonds with world consumption
growing. |
|
• |
Increasing awareness of the positive health
benefits continues to push demand
to include almonds in a range of products. |
|
• |
Strong recommendations from medical authorities
to include almonds as a component of your
regular diet. |
WORLD ALMOND PRICE
|
• |
The price earned by Australian producers is
largely governed by the world almond price and
the AUD/USD exchange rate. |
|
• |
Almondco Australia Ltd (the Processing and
Marketing Agent) exports a significant
proportion of its annual throughput to a wide
range of countries.
This helps to build the
reputation of Australian quality production and
increase international demand so that as
Australian production rises export markets are
available. |
VERSATILE AND VALUED NUTRITION SOURCE
|
• |
Almonds are a valued food source in a large
number of countries and cultures. |
|
• |
Almonds are a core ingredient in a large number
of foods and snacks that we all enjoy each day -
breakfast cereals, snack bars, cakes, muffins,
confectionery - and of course they taste good on
their own. |
INTRODUCING THE 2011 PROJECT
The 2011 AIL Almond Orchard Project is a unique
combination of two different arrangements, the Grower
Project and the Asset Trust. This is done so that Investors
can benefit from ownership of the orchard assets by
owning units in the Asset Trust and receive significant
financial benefits that flow from OWNING not RENTING.
The Grower Project operates via leases held by the
Grower over the orchard assets. This gives rise to the
tax deductibility of fees and an income stream from the
orchard for the 17 year term of the leases.
After this time, the almond trees still have a significant
period of economic life. All the future production flows
to the Asset Trust and is received by Investors via an
annual distribution. Units in the Asset Trust can be
owned by a different entity than the Grower - such as a
superannuation fund which may enable an efficient tax
position.
The assets held in the Asset Trust - WATER RIGHTS,
LAND and TREES have real economic value and any sale
of these assets (at the end of the Project) may give rise
to a gain that will be distributed to the owners.
WHY ALMONDS WITH AIL?
|
• |
Project management experience - AIL has successfully developed over 1,300 hectares of almond orchards. |
|
• |
Product Ruling PR
2011/10 - provides confidence and certainty for Growers regarding tax deductibility. |
|
• |
Asset Ownership - why rent the orchard when you can own it? |
|
• |
Modern Water Management - the most up to date irrigation systems and the application of new research and technology help ensure commercial production even in drier conditions. |
PROJECT STRUCTURE -
TWO SCHEMES IN ONE PROJECT
GROWER PROJECT
|
• |
100% deduction - Grower Application Fee is 100%
tax deductible |
|
• |
Ongoing deductions - for Irrigation
infrastructure write off, Growing and Management
fees and Lease fees |
|
• |
17 Year Project term - The Grower receives the almond sales proceeds for 17 years and then all proceeds are paid to the Asset Trust |
|
• |
Joint Venture Arrangement - An individual can pay the application monies and their Self Managed Superannuation Fund or other related party can pay the subsequent costs until the orchard becomes profitable. From that time all orchard income is allocated 39% to the individual and 61% to the other entity. |
ASSET TRUST
|
• |
OWN not RENT - Asset Ownership via the Asset
Trust: |
|
• |
Legal Title to all scheme assets is held by Sandhurst Trustees as Custodian; |
|
• |
Distributions - the Lease fee paid by the Grower
(and tax deductible to the Grower) flows to the
Asset Trust and supports annual distributions |
|
• |
Harvest proceeds - from Year 18 (when the
Grower leases have ended) all the orchard
proceeds flow to the Asset Trust and support
distributions |
|
• |
Capital gain - when assets are sold (at Project
end) any capital gain is received as a
distribution |
WHAT WILL I OWN PER ALLOTMENT/UNIT?
|
Leases |
1 |
|
Land * |
0.125 Hectares |
|
Water Rights * # |
1.56 Megalitres |
|
Trees * |
40 |
|
Irrigation infrastructure value |
$ 3,000 |
* held via units in the Asset Trust
# not applicable to Temporary Water Allocations |
FEES PAYABLE ON APPLICATION AND IN YEARS 1
& 2
|
ON APPLICATION |
| Grower Application Fee |
$5,600 |
Immediately deductible |
| Grower Irrigation Fee |
$2,000 |
Fully deductible over the next 2 years |
| Unit Subscription Price |
$2,000 |
Capital cost per Unit |
| YEARS 1 And 2 |
| Grower |
$2,300 in Year 1 and $2,400 in the following year |
Both payments deductible in the year paid |
|
In the following years the Grower position is based on Almond harvest proceeds less operating costs. Refer to the PDS for full details of all costs. |
WHAT TAX BENEFITS WILL I RECEIVE?
| |
TAX DEDUCTIONS |
GST REFUND |
| On Application (2010) |
$5,091 |
$691 |
| Year 1 (2011) |
$3,000 |
$209 |
| Year 1 (2012) |
$3,091 |
$218 |
The fees and tax benefits may vary if an investor chooses to enter into a Joint Venture arrangement.
Please contact AIL for further information.
PR2011/10 is only a ruling on the application of taxation law and is in no way expressly or implied a guarantee or endorsement
of the commercial viability of the Project, of the soundness or otherwise of the Project as an investment, or of the
reasonableness or commerciality of any fees charged in connection with the Project. The Product Ruling is only binding on the
Tax Commissioner if the Project is implemented in the specific manner provided in the Product Ruling.
Almond Investors Limited (ABN: 13 102 342 870, AFSL 224314) (“AIL”) is the Responsible Entity of the 2011 AIL Almond Orchard Project. This document contains
general information associated with 2011 AIL Almond Orchard Project only. It does not take into consideration the investment objectives, financial situation or particular
needs of any prospective Investor. Prospective Investors should read the Product Disclosure Statement (“PDS”) and consult an independent financial advisor before
deciding whether to invest in the Project. A copy of the PDS can be downloaded above. Any estimates in this document should not be taken as forecasts. Actual results may differ significantly from those
estimated. AIL believes that the information in this document is accurate as at the date of production but is not responsible for any loss or damage which anyone
may suffer from reliance on this document. The Project is a long term investment and will be subject to the risks generally associated with commercial almond
production, processing and marketing. You should carefully consider the risks associated with the Project, outlined in the PDS, before making any investment
decision. No person, or corporation associated with AIL makes any representation regarding the performance of the Project or warrants, guarantees or
underwrites the performance of the Project.
|
