Sometimes land can generate income

Owners can generate income from their land (minus any fees) while ensuring it is protected and enhanced. Income opportunities can depend on the land's location, size and current state. The trust order often outlines leasing land for agriculture or horticulture.

We can advise trustees and owners on the best ways to transform their land into a profitable, sustainable asset.

What land income can be used for

The trust order for your land (a document that sets out the terms a trust must follow) determines what happens with land income. The trust order might require that land income is used for any of the following:

  • payments to land owners
  • payments to external parties – land income can go towards scholarships or kaumatua grants, or be used for community purposes, such as marae support
  • investment in the land to increase value and productivity – this might include building on the land, or buying assets like livestock.

How income is distributed to owners

Any income generated for the Trust from the land is held by us in the Common Fund and invested. We can then distribute any income from these investments amongst Common Fund account holders (the land owners) – this is known as "distributable income". Here's the process we follow to distribute income to owners:

  1. We deduct expenses, which includes taxes and management fees
  2. We transfer money to the trust or owners' bank accounts once per year, as long as the amount exceeds our minimum payment threshold (currently $2.00)
  3. We send owners an annual statement.

Make sure you can receive any distribution of income

We need up-to-date bank and contact details to make any payments or send statements. Confirm your contact details now – it only takes a couple of minutes.