The Assistant Treasurer Senator Rod Kemp, today announced transitional measures to assist oyster farmers in complying with the trading stock rules.
These measures will apply to farmers that use the traditional stick farming method to capture oyster spat, grown for human consumption.
Oyster farmers using the traditional stick farming method are able to value their trading stock at year-end using a designated value per stick. The Commissioner of Taxation has previously advised industry that $1.00 per stick would be an acceptable initial value.
To avoid imposing a transitional cost in complying with this valuation method, oyster farmers using the traditional stick method will be able to apply an opening trading stock value, in the transitional 2001-02 year, based on the per stick method.
The stick method of valuing trading stock will allow these oyster growers to comply with the trading stock rules without incurring excessive compliance costs.
For those oyster farmers participating in the Simplified Tax System, the stick method of valuation will largely eliminate the need to value trading stock on an ongoing basis.
This announcement follows a period of extensive consultation between the Australian Taxation Office and the oyster farming industry.
Legislation to give effect to the Government's decision will be introduced as soon as practicable.
MELBOURNE
24 August 2001
Michael Bradshaw, Australian Taxation Office (02) 6216 1514
Scott Bartley, Treasury (02) 6263 4411
Richard Wise, Assistant Treasurer's Office (02) 6277 7360