Afforestation Grant Scheme Guidelines
Other Issues
Tax Treatment
Grant payments are treated as grants to businesses under section DF1 of the Income Tax Act 2004. The grant is made by the Government under a contract at an approved value and is not a reimbursement of costs.
The administrator will advise the IRD of all grant payments.
| Goods and Services Tax (GST) |
|---|
| All grant tenders are made on a GST-exclusive basis. GST is added to the grant payment and must be accounted for in the usual way. |
Who will own the Carbon Credits?
The Crown will retain ownership of the Kyoto carbon credits and liabilities associated with the grant forest.
Risk
The Crown will accept the risk of carbon loss from fire, wind, other natural disasters, with the cost being included in the setting of the maximum grant amounts.
Except as provided in an AGS agreement, the Crown is not liable to any person for compensation or damages in respect of any matter arising from an AGS agreement.
Legal Authority
Under section 15 of the Forests Act 1949, the Minister of Forestry has the power to make financial grants or loans to persons in the forestry sector.
The operating details of the Scheme may be altered with the approval of the Minister of Forestry.
Contact for Enquiries
Sustainable Land Management and Climate Change
MAF
Pastoral House
25 The Terrace
PO Box 2526, Wellington
Tel: 0800 CLIMATE (254 628)
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