FAQ's

Frequently Asked Questions

The information below is general in nature and is provided to assist potential and current Growers with learning more about Rewards Group Ltd and the projects it offers. You should always read the PDS in its entirety and seek advice from your financial adviser, solicitor and/or accountant to see whether the project suits your individual circumstance before investing.

How do I invest?
What are Joint Venturers?
Is finance available?
What are the current merchant fees?
Can Trusts/Superannuation funds borrow?
What tax deductions can I claim?
Is there a 'Cooling-off' period?
What are the expected returns?
Why do I need insurance?
What is the difference between compulsory insurance and optional insurance?
What are management fees?
Can I visit the location of the project that I have invested in?
When do I receive proceeds from the sale of the harvests?
How will I know how my woodlot/grove is performing?
What are the harvest dates of my investment?
What happens to the product after harvest?
Can I sell my Interest in the project?
I need to notify Rewards Group of changes to my current details?
How is my privacy protected?
How do I lodge a compliant?

How do I invest?
You must complete the application form attached to a Product Disclosure Statement (PDS) and submit it to Rewards Projects Ltd along with payment for the subscription monies. See your financial adviser for a copy of the PDS or call Rewards on Freecall 1800 111 781.

If you are applying for finance, please complete the separate finance application form and submit it along with the application form.

What are Joint Venturers?
Rewards Projects Ltd may accept applications from joint venturers that wish to conduct an unincorporated joint venture amongst themselves to participate in a project. Unlike normal joint applicants, who are treated jointly and severally, each person who participates as a Joint Venturer is treated differently to each other. i.e. Not jointly and severally. By way of comparison a ‘joint application’ is where two people are responsible for all fees and obligations on an equal basis.

With a ‘joint venturer application’, the first person (known as JV1) is responsible for certain fees (e.g. Application Fee) whereas the second person (known as JV2) is responsible for a different set of fees (eg: management fees, rent).

Any income from the Scheme is distributed amongst normal ‘joint applicants’ on an equal basis however with ‘joint venturers’ the income may be distributed on a different ratio basis.

Please refer to the PDS of the relevant Scheme for further detail.

Is finance available?
Rewards offers 12 months interest free terms to approved applicants. Rewards also offers a finance option of 5 years Principal and Interest to approved applicants.

Our preferred financier, MIS Funding No. 1 Pty Ltd (ACN 119 268 905), a wholly owned but non-guaranteed subsidiary of Commonwealth Bank of Australia (ABN 48 123 123 124) (CBA) will offer Principal and Interest finance options of 2, 5 and 10 years. MIS Funding No 1 Pty Ltd also offers a 10 year finance option consisting of 3 years Interest only and then 7 years Principal and Interest.

When applying for finance, please ensure that both the 4.2 Direct Debit Request Service Agreement and Part 5 of the Finance Agreement are completed and returned with the completed finance application.

Please refer to the finance package for full details of fees and charges associated with the terms or finance options offered by either Rewards or CBA.

What are the current merchant fees?
The fees and charges shown were correct as at 1 October 2008. If fees change, Rewards will update these amounts below. You may also call to confirm the current merchant fees on Freecall 1800 111 781.

Visa/MasterCard - 1.65%
American Express - 1.65%
Diners Club - not accepted

Can Trusts/Corporate Entity or Superannuation funds borrow?
Trust/Corporate Entity
Yes. If the Borrower is a trust or corporate entity, the Directors of the trust/corporate entity must provide a personal guarantee.

For all trust applications, a copy of financial statements and a certified copy of the stamped and dated trust deed, evidencing authority to borrow monies and provide security, must be provided.

Please refer to the Finance Agreement section of the finance application form for full details.

Superannuation Fund
No. Due to legal requirements, finance from the Lender is not available to superannuation funds.

What tax deductions can I claim?
Prospective Growers should seek advice from their professional tax advisers to confirm their own position in respect of taxation in general and the impact of GST. If you are registered for GST then you may be entitled to claim an input tax credit from the ATO for the GST component.

Growers will be able to obtain immediate taxation benefits and fees will be tax deductible in the financial year in which they are incurred. All Projects are supported by an Australian Taxation Office Product Ruling.

Please refer to the relevant Project's Product Ruling and seek advice from your tax adviser in relation to your own circumstances.

Is there a ‘Cooling-off’ period?
Any person may write to the Managing Director of Rewards Project Ltd and request that their application be withdrawn prior to their application being formally accepted by Rewards Project Ltd.

Once the application has been formally accepted by Rewards Projects Ltd, there is no form of ‘cooling-off’ period in respect to that application made in any of the Projects.

The Constitution of each Project provides that since the Projects are not ‘liquid’ schemes, as defined by the Corporations Act, when applications are accepted, applicants may not exercise any ‘cooling-off’ rights they would have had if the Project were liquid.

What are the expected returns?
The calculation of investment returns involves the consideration of a number of variables, many of which are outside the control of the Rewards Projects Ltd. Accordingly, it is not possible to determine financial returns over the life of a project with any certainty.

Returns for all projects are also subject to a Grower’s individual taxation position and the ‘risk factors and safeguards’ that are set out in more detail within each PDS.

Please refer to the relevant Scheme PDS for information relating to current prices for the sale of the product after harvesting.

Why do I need insurance?
Where risk can not be managed, insurance cover is sought to ensure that any loss to a Grower is kept to a minimum. Following individual acceptance to each Grower, Rewards Projects Ltd will negotiate on their behalf an insurance policy that covers loss or damage resulting from fire, aircraft, hail and windstorm. Where the Grower has been issued an invitation to insure their investment, the Grower must pay the invoiced amount by the due date to initiate the cover. Please click here to download our insurance flyer for further details.

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What is the difference between compulsory insurance and optional insurance?
Under the terms of each Rewards Project, insurance is optional for most paid-up (cash) Growers, and compulsory for Growers electing to utilise a finance arrangement. In accordance with the Finance agreement, all investors who have elected to use and are presently repaying a finance arrangement, must insure their trees against loss. Insurance for standing trees is also compulsory for Growers who have purchased woodlots in the Rewards Group Teak Project 4 (ARSN 111 957 843) and Rewards Group Sandalwood Project 5 (ARSN 112 103 313). Rewards Projects Ltd and the Independent Forester encourage all Growers take out insurance for their Woodlots or Groves.

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What are management fees?
Managements fees are the costs associated with managing your investment. Depending on the project, maintenance of your investment can range from a variety of activities including, but not limited to, planting, weed and pest control, nutrient analysis, fertilising, fire control, site maintenance, pruning, culling, harvesting, transporting, loading and sale cost, and annual reporting.

Management fees will be dependent on the individual project and could either be paid on an annual basis and/or as a percentage deducted from the Grower’s share of the net sale proceeds. An additional fee may be deducted as a percentage of the Grower’s share from the net sale proceeds to cover the marketing and/or licence fee after harvesting.

Please refer to the relevant PDS for full details.

Can I visit the location of the project that I have invested in?
Rewards welcomes investors to visit their plantations and orchards, however due to health and safety requirements, visits must be organised by calling head office on Freecall 1800 111 781.

Bookings for supervised site inspections must be managed by one central point of contact as we now have approximately 10,000 hectares of high value forestry assets and some 1300 hectares of irrigated horticultural assets under management and, as such, we need to coordinate the process.

How will I know how my woodlot/grove is performing?
Farm managers inspect each project on a regular basis and document its performance. The farm manager will submit a report to the independent forester accordingly. The independent forester will then inspect the plantations and prepare a written report in relation to the progress and status of the project which will be sent to the Grower by Rewards Projects Ltd (Responsible Entity).

Growers are also encouraged to contact Rewards Client Services Department on Freecall 1800 111 781 or login into the Growers secure section for information about their investment.

What are the harvest dates of my investment?
All projected forecasts and harvest dates for Rewards Projects are indicative and the final harvest schedule will be determined by the Manager at the relevant time with the aim of achieving the best overall result for the Growers. Please refer to the relevant PDS for details in relation to harvest times.

When do I receive proceeds from the sale of the harvests?
Each Grower is responsible for their share of harvest, transport, storage, processing (if any) and other related activities including the sale costs. The Responsibly Entity will deduct these costs before the final amounts are calculated and distributed to Growers, which will be within 3 months after completion of the harvest.

Please refer to the Constitution as contained in the Summary Material Agreements in the relevant Projects PDS for further details.

What happens to the product after harvest?
Brushwood
Brushwood is a very hardy plant and known for its longevity and low maintenance, making it an ideal choice for natural fencing. The demand for brushwood fencing continues to grow with an ever expanding housing market and shift towards premium natural products.

Once harvested, the brushwood is tied into bundles of about 24kg each and sold to fence manufacturers and fencing contractors in Australia. New mechanically formed panels are being developed and are expected to provide a more accessible product to developing markets.

Wine Grapes
The vineyards produce premium quality white wine grapes of the Chardonnay and Sauvignon Blanc varieties. Once harvested the grapes are sold to various wineries for the production of wine which is sold both here in Australia and exported overseas.

Teak
Teak is sold as logs, lumber and semi-finished or finished products (such as furniture and building components).

Rewards Projects Ltd has already entered into 3 large Sale and Purchase Agreements in relation to the sale over a 20 year period of more than 1,500,000 m3 of Teak logs. Investors in Rewards’ future Teak projects will be able to invest knowing that their Teak logs have already been sold before they have even been grown.

Sandalwood
Western Australian Sandalwood when ground into a powder can be processed into incense sticks (known as joss sticks). In India alone each day some 500 million incense (joss) sticks are burnt.

Sandalwood Oil (distilled from the Sandalwood heartwood) is used in the manufacture of perfumes, soaps, cosmetics, Sandalwood oil flavoured betel nut products, Sandalwood oil flavoured chewing gum, Sandalwood oil flavoured chewing tobacco products and Sandalwood when chopped into small billets is sold into the worldwide Sandalwood burning market.

Rewards Projects Ltd has already entered into a Sales Agreement with one of India’s largest Sandalwood traders and four other substantial Sandalwood buyers located in India.

Fruits
Rewards Projects Ltd has entered in to a binding Heads of Agreement with Global Rewards as its agent to market the mangoes and grapefruit from the relevant Projects. Rewards Projects Ltd has also entered into an agreement with OzTaste Pty Ltd (OzTaste) to market the Spring Flame peach from the relevant projects.

Rewards in conjunction with Horticulture Market Access Committee, Biosecurity Australia and the Western Australian Department of Agriculture have undertaken research into treatment trials for the Japanese grapefruit market.

Berries
Rewards Projects Ltd has entered into a binding Heads of Agreement with Oz Fresh Pty Ltd (Oz Fresh), which will act as its agent to market the non-proprietary strawberries and blueberries from the Projects.

Can I sell my interest in a project?
Growers in a project have no right to require Rewards Projects Ltd to purchase their interest and there is currently no formal secondary market for horticulture units. A Grower wishing to sell an Interest must locate a willing buyer and negotiate a sale of the Interest to the buyer. Any such sale binds the purchaser to the various agreements that forms the Scheme documentation.

Growers intending or interested in selling their interests in a project should contact Rewards Client Services Department on Freecall 1800 111 781 for further details and an information pack.

I need to notify Rewards of changes to my current details?
All changes to Grower details need to be supplied in writing. To notify Rewards of any changes, please complete either change of address form or changes to direct debit details form and forward to Rewards for processing.

Any name changes need to be supplied in writing and accompanied by relevant documentation to support the change.

How is my privacy protected?
Under the Privacy Act 1988, we are obliged to take reasonable steps to ensure that any personal information stored by us, is protected from misuse or loss and from unauthorised access, modification or disclosure. Please click here to view our full privacy policy.

You may request access to your personal information that we hold. You can contact us, in writing, to make such a request or for any other reason relating to the privacy of your personal information.

How do I lodge a compliant?
Rewards Projects Ltd acknowledges an investor’s right to make a complaint and aims to resolve all complaints received in a prompt, efficient and amicable manner.

Investors are free to lodge a complaint in person, in writing, by phone or email, although they are encouraged to do so in writing. If this is difficult, a staff member will assist in submitting the complaint in writing subject to the investor’s consent.

Further details about lodging a complaint are contained in our Complaints Brochure. Please contact the Complaints Officer on Freecall 1800 111 781 should have any queries.