Does Heartwood Plantations own a share in the investment?

There are two investment choices with Heartwood Plantations. Our private investments are 100% owned by our customers with Heartwood Plantations designing, implementing and managing the project their behalf. The second choice is to be part of our Heartwood Structured model, where customers can buy a proportion of our investments - ask us for more details!

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.

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 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 years) and third (age 15-20 years) 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.

Will I make anything from the carbon stored in the trees?

Currently there are only informal voluntary schemes operating in Australia which purchase carbon stored in trees. These are often used to offset carbon dioxide produced from travel in motor vehicles or airplanes. None of these are currently available to Heartwood Plantations.

What markets will the wood products be sold to?

Heartwood Plantations targets premium outdoor feature timber markets such as decking, lining boards, screen boards and battens. Although intensive management regimes will result in our plantations yielding a high percentage of these products, there will always be a proportion of lower value timber products such as chips, firewood and biofuel.

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

Rarely. In most cases our foresters design each plantation around a site's unique features and alterations to this design can result in a compromise on plantation survival, growth or form.

Can I insure my trees?

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

Can I graze livestock amongst my trees?

Yes, Heartwood Plantations encourages grazing of sheep or calves (up to 12 months) after the trees are approximately 3-4 years old. 

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

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 undertaking reversion works to return the site to agriculture. When another plantation is opted for, cultivation is undertaken with specialised equipment which enables trees to be simply replanted into new mounds created over the old stumps.

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

Heartwood Plantations deliberately focuses on durable hardwood timber because we believe they will remain a high demand product into the foreseeable future. Australia has halved access to its native forests over the last 10 years and although there are around 1 million hectares of hardwood plantations in Australia, less than 2% are suitable for durable hardwood markets. As the population grows, and restrictions are placed on imported timbers from developing countries, the demand for these products will continue to increase.

Can I have different ownership of land and trees in the same investment?

Yes. Legislation in Victoria, known as the Forestry Rights Legislation, enables plantations and land to be in separate ownership and listed as such on the title. For example, this means that you can own your trees personally and receive a 100% tax deduction for all forestry-related costs and own your land in a Self Managed Super Fund (SMSF).