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April 11, 2017
Timber plantations are sometimes incorrectly perceived to be the beneficiaries of ‘incentives’ or ‘subsidies’ through the Australian taxation system. Consequently, the tax treatment of plantation forestry is also sometimes incorrectly targeted as the direct cause of land use change associated with plantation establishment on cleared agricultural land. Such a view misunderstands the application of Australian tax law allowing the deduction of legitimate expenditure incurred in conducting business activity to generate future profit.
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