Investors are invited to participate in the Project by acquiring a Vine Right over a minimum of one ‘Vinelot’ (0.2 hectares), comprising of approximately 485 vines, by paying the application fee of $17,325 (inc GST) per Vinelot. Payment of the Application Fee constitutes full payment of the Initial Services Fee and a substantial portion of the Ongoing Fees for the first three years of the Project. The Initial Services include supervision of the vineyard establishment (which is established, paid for and owned by Gunns Limited), control of pests, weeds and disease, maintenance of the vineyard and procuring a report by the Independent Viticulturist.

 

All of the Initial Services are performed on or before June 30 2007. Growers do not own the vineyard infrastructure - this is paid for and owned by Gunns. As a result Growers will not have a residual interest in the vineyards at the end of the Project Term (20 years). Growers acquire an exclusive right to use the infrastructure and the vines (and enjoy the benefit of the grapes) on the Vinelots through the Vine Right Agreement.
 

Ongoing Fees

Growers pay the application fee in Year 0 of the Project (i.e. prior to 30 June 2007) Growers will not be liable for any Ongoing Fees in Year 1 of the Project. However growers will be required to pay the GST component of the Maintenance and Harvest Fees in Years 2 and 3, anticipated to be $150 and $315 in each year respectively.

Fees from Year 4 will be offset against grape sale proceeds. Where ongoing fees exceed the Grower’s entitlement to grape sale proceeds an invoice will be sent for the shortfall.

Tax Deductibility
By investing in the Winegrape Project 2007 you are entitled to claim a tax deduction of 62% of the Application Fee in the financial year in which it is paid. You will also be entitled to further deductions of 18% and 16% of the Application Fee in the two following financial years respectively, amounting to a cumulative deduction of 96% deduction of the Application Fee in the first three years of your involvement in the Project. It is also anticipated that 100% of the Ongoing Fees you pay will be tax deductible in the financial year in which they are paid.

In addition you will be entitled to a depreciation deduction at 13% p.a. from Year 4 of the capital expenditure incurred in establishing the vines. This will include the balance of the application monies paid by the Grower as well as a share of the costs incurred by Gunns. GPL will advise you of the amount of the deduction. The tax deductibility of this investment will depend on your particular tax circumstances and you should seek professional advice. Please refer to Product Ruling PR 2006/164 for full details. A copy of the Product Ruling can be obtained from our website or the ATO.

Please note that the product ruling is in no way an endorsement of the commercial viability of the project and is only binding on the Commissioner insofar as the project is carried out in the manner prescribed in the product ruling.

Vinelot Details

 

 

 

Features

Up to 6% cash rebate (see below)

$17,235 per Vinelot

96% tax deduction for investment amount

commercial harvest year 5

20 year term

Flexible finance options available

 

Finance Options

You can finance a majority of your investment through finance packages available with the following options:

 

 

 

Commissions & Cash Rebates

With tax effective investments we will receive a commission that is not paid from your investment amount. With the Gunns Winegrape Project 2007 this is 8% commission. Commission is rebated depending upon the amount invest as shown in the table below:

 

The cash rebate is paid to you as soon as we receive our commission payment ex GST, note the investment amount corresponds to the number of units, eg 2 lots will be a 5% rebate, 4 units or more would be 6%.

 

Further Information

For further information please download any of the following files or right click on the button and 'save target as' to download to your computer (all files are in *pdf format):

 

 

 

 

IMPORTANT : This information has been prepared without taking into account your investment objectives, financial situation and particular needs. National Financial Solutions Pty Ltd (the authorising licensee) makes no recommendations as to the merits of any investment opportunity referred to on this site or via email correspondence. All indications of performance returns are historical and can not be relied upon as an indicator for future performance. Any investment decision in the products listed is entirely yours. NFS bears no responsibility for the appropriateness of the investment to your circumstances.  NFS will not be held responsible for the performance or security of any investment going forward. Furthermore NFS recommends that you seek advice from an independent person as to the appropriateness of any investment that is placed through our service.

With all of these types of investments you should seek independent taxation advice to determine whether this investment suits your circumstances. Please read the important information section.

By listing this investment on our site we are by no means endorsing this investment, manager or product.

* IRR upper range from independent research report