The Hon. Kim Chance MLC
Minister for Agriculture, Forestry and Fisheries; the Midwest, Wheatbelt
and Great Southern;
Leader of the Government in the Legislative Council
9 July 2004
CFWA News
This message has been issued by The Co-operative Federation of Western Australia as part of its Member Services and Business Awareness programs.
ITAA 120 loans getting closer
The Federation is very pleased that the Minister for Agriculture has obtained Cabinet approval as outlined in the following media release.
The CFWA has made representations to the Minister to ensure legislation is presented to Parliament as a matter of high priority. The Federation has also made representations for re-financing to be included in the section 120 loan scheme to ensure the WA co-operative sector is treated fairly and equitably.
Government
of Western Australia
Media Statement
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The Hon. Kim Chance MLC |
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Statement Released:
6-Jul-2004 |
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Regional WA to benefit from tax break for primary produce co-operatives |
6/7/04
State Cabinet has approved
the creation of a loan facility for Western Australian primary produce
co-operatives.
Agriculture, Forestry and
Fisheries Minister Kim Chance made the announcement today, following a regional
Cabinet meeting in Harvey.
The loan facility will
provide important tax relief for co-operative businesses in their efforts to
create more employment and economic activity in regional areas.
They also provide indirect
regional benefits when the co-operatives distribute their profit back to their
members.
Mr Chance said
Eastern-States' experience had shown the dairy industry was one production area
that particularly benefited from such a facility.
"Establishing the loan
facility was a key recommendation of the Legislative Assembly Economics and
Industry Standing Committee inquiry into the sustainability of the dairy
industry in WA," he said.
"The committee recognised
this facility would provide an opportunity for existing and prospective dairy
co-operatives to leverage their inherent value and provide greater benefits to
their members and the broader WA dairy industry."
The Government loan
facility will give eligible co-operatives the ability to deduct the loan
repayments against their taxable income, as allowed under section 120(1)(c) of
the Australian Government's Income Tax Assessment Act 1936.
Western Australia
has approximately 55 co-operatives, with large groups involved in dairy, meat,
grains and fisheries marketing and processing.
"Many existing
co-operatives are keen to take up the new loan facility and other groups are
looking at forming co-operatives to better process and market their member's
products," Mr Chance said.
The loan facility will be
available to all co-operatives that satisfy the eligibility criteria in the
Australian tax legislation.
"Co-operatives will also
have to provide an unconditional bank guarantee to the Government when applying
for a loan so that the co-operative carries the financial risk of the loan, not
the Government," the Minister said.
The loan facility will be
operated by the Department of Agriculture and be funded through the interest
rate paid on loans to eligible co-operatives.
The department will also
provide guidance to groups interested in establishing co-operatives to better
value add and market their products.
Mr Chance said the State
Government would establish the loan facility as soon as possible.
Farmers and co-operatives
wanting more information about the Co-operative Loans Facility or establishing
co-operative structures should contact Stuart Clarke at Department of
Agriculture by calling 9368 3199.
Minister's office: 9213
6700
ENDS