Jun 18, 2007. /Lesprom Network/. After a two year process, including a comprehensive federal government review of the taxation arrangements for investment in plantation forestry, the legislation for new taxation arrangements for forestry managed investment schemes (MIS) has been passed by both houses of parliament. Peak forest industry body, NAFI, and hardwood plantation body, Tree Plantations Australia (TPA), representing the majority of Australia’s Kyoto forests, said the passing of the legislation is an important milestone for the plantation forestry sector, creating a secure environment for long term investment in the forest industry, and will help create a low-emissions carbon future for Australia. “The legislation provides certainty for investors in plantation establishment as well as facilitating the development of a secondary market for established plantations that are more than 4 years old,” said NAFI chief executive officer, Catherine Murphy. “This will make plantation investment attractive to a wider range of investors,” she said. TPA Chief Executive Officer, Allan Hansard, said the timing of the announcement is significant as Australia moves towards developing a secure environment for carbon positive industries. “Australia’s tree plantations will now be able to increase their positive contribution to local communities, the national economy and the environment. Plantations already sequester over 20 million tonnes of greenhouse emissions, offsetting emissions from other sectors,” he said. “The new taxation arrangements for forestry MIS will underpin value-added processing facilities including two major pulp mill projects proposed in Tasmania and South Australia. The environment and rural communities will benefit greatly. “As a result the industry can now continue to expand with long term security,” he said. NAFI provides the national voice for the hundreds of firms and thousands of individuals who comprise the Australian forest industries.