The Government has committed $15.25 million from its $500 million start-up assistance fund to help farmers make a successful transition to the GST.
The Government believes farming organisations are best placed to educate their members, and others in their sectors, about changing farm business practices for The New Tax System. The assistance announced today will enable major farm organisations to do such things as run seminars, answer inquiries from farmers and provide other forms of practical assistance.
These funds will also enable the National Farmers Federation and major State-based farming organisations to develop tax-reform materials for farmers in conjunction with the Department of Agriculture, Fisheries and Forestry Australia (AFFA). This cooperative development will reduce overheads and duplication.
This strategy has been developed with support from the major farming organisations. Major farming groups have formed a Rural Tax Education Committee to finalise arrangements for reaching all regions and meeting farmers tax reform needs. (The Committee will be supported by the AFFA Secretariat for Rural GST Start-Up Assistance.)
This initiative has been strongly endorsed by the Chairman of the New Tax System Advisory Board, Mr Chris Jordan. The Board monitors and provides advice to the Government on the most appropriate means of informing and educating the business and community sectors to ensure their preparedness for the introduction of The New Tax System.
The Australian Taxation Office (ATO) is already conducting a campaign to tell farmers how to comply with the GST. Under this new initiative, farmers will also know how the GST will affect their business and what skills they will need to prepare for the new tax system. The Board will work with the ATO and AFFA to ensure the Governments campaigns and those of farming organisations are complementary.
The Government has made available $500 million to assist small businesses, charities and education bodies prepare for the GST. This assistance is being provided through:
- An education and information program on business skills for The New Tax System ($40 million);
- Assisting key industry and professional organisations (such as farming groups) to deliver information and assistance to their members ($130 million);
- An adviser education program to increase the number of people able to train others to provide advice on business skills and the GST ($7 million); and
- Direct assistance to individual enterprises to prepare for the GST ($320 million).
In addition to this $500 million for start-up assistance, I recently announced that the Government would legislate to provide an immediate tax write-off for businesses with a turnover of less than $10 million for GST-related plant or new software purchased before 1 July 2000. This represents additional assistance of $175 million.
For further information on the GST start-up assistance for the farm sector contact Jim Hagan, General Manager, GST Start-Up Assistance Office on (02) 6263 4405 or 0412 476 517.