Does Heartwood Plantations own a share in the investment?

No, unless you decide to enter into a joint-venture arrangement under the Radial Wood initiative, Heartwood Plantations is purely a service provider and the investment of timber and carbon is owned 100% by you the investor.

Can I receive a tax deduction for my timber plantation?

If you are undertaking a forestry investment as an individual (Sole Trader), in most cases you will receive a 100% deduction via the Tax Commissioners Discretion. There are a range of investment structures that can be utilised for forestry investments. In addition to being a Sole Trader, forestry investments can be structured as Partnerships, Unit Trusts, Discretionary Trusts or Self Managed Superannuation Funds. For more information see Forestry Tax Structures.

How long does the investment take?

Each investment varies in length according to the performance of the trees. On premium sites (high rainfall and high quality soils) trees may reach maturity in less than 20 years, however most investments with Heartwood Plantations aim to be mature at 25 years.

Do I receive any returns along the way?

Yes, all investments with Heartwood Plantations are thinned periodically to reduce inter-tree competition. Usually at least three thinning operations are carried out. Generally the second (age 8-12) and third (age 15-20) thinnings will provide a commercial return.

Will I have trouble harvesting the trees in the future?

Under State Government legislation, the submission of a Plantation Development Notice with the local Shire officially recognises the right to manage the stand for commercial timber production. In some Shires, certain zones and overlays may also require a Planning Permit to be submitted prior to establishment. Once these planning conditions have been met the plantation can be commercially managed and harvested.

How much will I make from the value of carbon stored in the trees?

Currently there are a range of informal voluntary schemes operating in Australia that purchase carbon stored in trees. These are often used to offset carbon dioxide produced from travel in motor vehicles or airplanes. Payments vary depending on the scheme and the performance of the plantation, however, these generally range between $60 and $120 hectare^-1 year^-1.

What markets will the wood products be sold to?

Heartwood Plantations targets feature timber markets such as decking, flooring and furniture. Although intensive management regimes will result in our plantations yielding a high proportion of these products, there will still be a proportion of lower value timber products. Lower value products will include paper, firewood, posts, poles and building timber. Biofuel may also become a viable minor product market in the future.

Do I have a choice in the species that are grown in my timber investment?

Yes, in many cases more than one species is suited to a property and Heartwood Plantations will provide a choice for the site. However, generally it is preferable to manage one or two species per site otherwise additional unnecessary management and marketing costs can be incurred.

Can I insure my trees?

Yes, Heartwood Plantations has links with reputable insurance companies that can insure your trees for a range of things including fire, wind or aircraft damage.

Can I graze livestock amongst my trees?

Yes, Heartwood Plantations encourages grazing of sheep after the trees are more than 2 metres in height. Under special circumstances other livestock can be grazed infrequently depending on the tree age and species grown. 

What will be the impacts of Climate Change on a plantation investment?

Although the impacts of Climate Change are discussed frequently in the media, in reality there will be a gradual change in temperatures and weather events over many years. However, given the long-term nature of timber plantations, careful species selection is extremely important. Heartwood Plantations generally selects species conservatively such that trees planted on any property will be well within their natural climatic zone and capable of withstanding any impacts of Climate Change.

What happens to the stumps after the trees are harvested?

Once a plantation is harvested the owner has the option of re-establishing a new plantation or returning the site to agriculture. Generally re-establishment is the preferred option as the conversion back to agriculture is likely to be more expensive. Heartwood Plantations has established numerous second rotation sites in recent years. Depending on the soil and terrain, these sites can be cultivated with specialized equipment and trees replanted into new mounds created over the old stumps. In some soil types, the new seedlings are simply planted between the old stumps, which generally breakdown well before the new trees are due for harvesting.

How do I know timber will be valuable in the long term?

Heartwood Plantations deliberately focuses on durable hardwood species suited to flooring and furniture (feature timber) markets because we believe they will remain a high demand product into the foreseeable future. Australia has a large wood products trade deficit and continues to lock up large areas of native forest every year in National Parks and Reserves, further exacerbating the problem. Although there are around 1 million hectares of hardwood plantations in Australia, less than 2% are suitable for feature timber markets. In addition, the emergence of carbon trading places timber above all its competitors as a carbon absorber. The future is bright for timber investments with Heartwood Plantations!

What happens if I want to sell my land?

Legislation in Victoria, known as the Forestry Rights Legislation, enables plantations and land to be in separate ownership. This means that you can continue to own your trees even if you decide to sell your land. In these cases, a Forest Property Agreement is generally drawn up and the plantation ownership is then officially registered on the Title.