TFS owns approximately a third of plantations under management, further aligning its interests with those of its investor partners.
TFS completed the first commercial harvest of its Indian sandalwood plantations in 2014 and its second harvest in 2015. The third harvest is scheduled to commence by mid-2016.
Sustainable Development
TFS is committed to sustainable
development to preserve longterm
benefits for the community,
environment and TFS.
TFS believes that it can be part of
a better world, starting with the
communities in which we work and
operate. TFS supports local and
indigenous communities through the
sponsorship of cultural and educational
programs and the creation of local
employment opportunities.
The unique climate of Australia’s tropical
north provides an ideal location for the
growth of Indian sandalwood and TFS
is committed to preserving this unique
region and minimising the company’s
environmental footprint.
Environmentally Responsible
TFS believes in thinking of tomorrow
by adopting a proactive strategy to
environmental management.
The TFS Group has achieved
accreditation for ISO 9001:2008
(Quality), ISO 14001:2004 (Environment)
and AS/NZS 4801:2001 (Occupational
Health and Safety) and continually works
towards environmental and ethical best
practice.
On a global scale, TFS is ensuring the
longevity of this much sought after
species.
High Demand & Increasing Price
Sandalwood features in a wide range
of products around the globe including
perfumes, cosmetics and toiletries,
traditional medicines, medicinal skin
care products, pharmaceuticals,
carvings, fashion, elite furnishings,
incense, religious ceremonies and
religious artefacts.
The Indian species of sandalwood
(Santalum album) commands the
highest price at auction due to its
superior oil yields and long-term market
acceptance. The auction price of wild
mature Indian sandalwood heartwood
in India has increased from $30,900 per
tonne in 2000 to $212,409 per tonne
in 2015*. This equates to an annually
compounding price growth over the last
15 years of approximately 14%.
Depleted Supplies
Due to high demand for the wood
and oil of the Indian sandalwood
tree and the depleted supplies from
wild harvesting in India, TFS grown
Indian sandalwood is the world’s
largest sustainable source of Indian
sandalwood.
Australia has the only known largescale
commercial plantations of Indian
sandalwood in the world, with TFS being
the largest.
Optimal Growing Conditions
The tropical north of Australia displays
ideal conditions for the healthy growth
of Indian sandalwood.
The intellectual property built up by TFS
over 18 years of plantation experience is
second to none. Supporting this is over
20 years of government research into
Indian sandalwood silviculture.
*
It should be noted that:
- the price of heartwood from Indian auctions relates to mature
wild sourced trees. These do not necessarily reflect anticipated
prices for 14 to 16 year old plantation sourced heartwood; and
- past increases in the price of Indian sandalwood are not
necessarily indicative of future price increases. The price of
Indian sandalwood may be affected by a range of factors
outside the control of TFS Properties.
100% Tax Effective Product Ruling
Growers who are registered for GST may also
claim input tax credits for GST paid in relation to TFS 2016. By
becoming a Grower, you are deemed to be in business and therefore
entitled to register for GST.
Growers should be aware that Product
Ruling PR2016/1 is based on the precise
arrangements identified in the Ruling.
If the arrangement described in the
Ruling is materially different from the
arrangements actually carried out, the
Ruling has no binding effect on the
Commissioner and will be withdrawn or
modified. The Product Ruling is only a
ruling on the application of taxation law
and is in no way expressly or impliedly
a guarantee or endorsement of the
commercial viability of the project, of the
soundness or otherwise of the project
as an investment, or the reasonableness
or commerciality of any fees charged
in connection with the project. It is
recommended that Growers read the
Ruling in its entirety and seek their own
professional taxation advice concerning
an investment in TFS 2016.
Discount For Additional Lots
TFS 2016 has a minimum investment of
one twelfth of a hectare (1/12th Ha) with
volume discounts for 12 or more lots
Flexible Finance Options
Flexible product options with readily
available finance through Arwon Finance
Pty Ltd (‘Arwon Finance’), a wholly owned
subsidiary of TFS Corporation Ltd, via
either a 12 Month Interest Free Loan or
a Principal and Interest Loan.
Ability To Defer Ongoing Fees
Following the initial Establishment Fee,
Upfront Annual Fee and Upfront Rent,
a Grower may elect not to pay the
Annual Fees and Rent via an annual
election (see the costs and options
section for more details).
Grower Protection
To maximise grower protection, TFS
has introduced additional safeguards to
protect growers’ interests. This includes
TFS depositing 50% of the Establishment
Fee and the entire Upfront Annual Fee
& Upfront Rent into trust accounts
maintained by an Independent
Custodian. These funds shall be released
to the Responsible Entity as set out in
the PDS.
Fees Per Sandalwood Lot of 1/12th Hectare
Additional fees and costs may apply. Please refer to the TFS 2016 Product
Disclosure Statement for a complete list and explanation of project fees
and costs.
Note: Fees are listed in AUD, and are GST inclusive.
FEES PAYABLE ON APPLICATION
ESTABLISHMENT FEE
| Number of
Sandalwood Lots applied for by Applicant |
Fee per Lot |
Cost for 1 Hectare
(12 Sandalwood Lots) |
| 1 - 11 lots |
$7,975 |
|
| 12 or more lots |
$7,645 |
$91,740 |
UPFRONT FEES
| Fee |
Fee per Lot |
Cost for 1 Hectare
(12 Sandalwood Lots) |
| Upfront
Annual Fee |
$435 |
$5,220 |
| Upfront Rent |
$145 |
$1,740 |
Upon the payment of the Establishment Fee, Growers will acquire an interest
in 80% of the Gross Proceeds of Sale (less any applicable deductions as
described in this PDS and set out in the Lease and Management Agreement).
*Held in Custodian Account
ANNUAL FEES
Annual Investment Option
Under the Annual Investment Option, Growers can elect to pay the ongoing
Annual Fee and Rent on an annual basis.
| Fee |
Fee per Lot |
| Annual Fee |
$435 |
| Rent |
$145 |
The Annual Fee & Rent will increase each year at a fixed rate of 3% per annum
throughout the Term.
For each year in which a Grower elects to pay the Annual Fee and Rent, the
Grower will acquire an additional percentage interest in the Gross Proceeds
of Sale in accordance with the following table:
| Year of Election |
Additional interest in Gross Proceeds of Sale |
| Year 1-2 |
3% (plus GST) |
| Year 3-4 |
2% (plus GST) |
| Year 5-14 |
1% (plus GST) |
Annual Deferred Investment Option
After paying the Establishment Fee and acquiring an interest in 80% of the
Gross Proceeds of Sale (less any applicable deductions), Growers can elect,
on an annual basis, not to pay the ongoing Annual Fee and Rent.
For each year in which a Grower elects to defer the payment of the Annual
Fee and Rent, the obligation to pay the Annual Fee and Rent will be deemed
to have been satisfied and the Grower will not be entitled to acquire the
additional interest in the Gross Proceeds of Sale corresponding to that year.
