Mr MITCHELL - 1994-10-12
With the rapid expansion of the horticultural industry in the Northern Territory, are federal Labor government policies helping or hindering the further development of this wealth- and job-creating industry?
ANSWER
Mr Speaker, this is another example of the federal government paying merely lip-service to issues of industry development, wealth-creation and employment. The horticultural industry in the Northern Territory is now valued at over $35m. That comes from a base in 1983 of $2.84m. Production last year topped 12 000 t, and that comes from a base in 1983 of about 3000 t. The industry provides hundreds of jobs, both permanent and part-time, for Territorians, and there is no indication that the spectacular growth we have witnessed in the horticultural industry is likely to come to an abrupt halt. In fact, there is a great deal of excitement among horticulturists and, indeed, potential investors about the future of the industry in the Northern Territory, and that is despite what can be described only as discriminatory tax laws in relation to horticulture, and I refer here to the tax deductibility of capital infrastructure and costs. Draft Tax Determination DT94/D77 reaffirms, in part:
Page 235
Establishment costs of fruit and nut trees in the initial planting or extension of an orchard or plantation are non-deductible capital outgoings. These costs include
the following outlays: the cost of clearing, contouring, stone removal and draining of the land; the cost of preparing the land to plant the trees, such as ploughing,
top soil enhancement etc; the cost of buying trees; the cost of planting the trees in the land.
That situation persists despite constant recommendations from the Industry Commission that the federal government address those anomalies. That situation does not exist in relation to grapes, and I assume that is only because the bureaucrats and centralists of Canberra enjoy a tax break on their wine. I would certainly assume that it would not apply to the establishment of piggeries.
I shall be writing to Senator Collins expressing my concerns in relation to this seemingly discriminatory tax arrangement, and I trust that honourable members opposite will use what little influence they have with their federal counterparts to assist in some way in readdressing the current tax arrangements.
Page 236
ANSWER
Mr Speaker, this is another example of the federal government paying merely lip-service to issues of industry development, wealth-creation and employment. The horticultural industry in the Northern Territory is now valued at over $35m. That comes from a base in 1983 of $2.84m. Production last year topped 12 000 t, and that comes from a base in 1983 of about 3000 t. The industry provides hundreds of jobs, both permanent and part-time, for Territorians, and there is no indication that the spectacular growth we have witnessed in the horticultural industry is likely to come to an abrupt halt. In fact, there is a great deal of excitement among horticulturists and, indeed, potential investors about the future of the industry in the Northern Territory, and that is despite what can be described only as discriminatory tax laws in relation to horticulture, and I refer here to the tax deductibility of capital infrastructure and costs. Draft Tax Determination DT94/D77 reaffirms, in part:
Page 235
Establishment costs of fruit and nut trees in the initial planting or extension of an orchard or plantation are non-deductible capital outgoings. These costs include
the following outlays: the cost of clearing, contouring, stone removal and draining of the land; the cost of preparing the land to plant the trees, such as ploughing,
top soil enhancement etc; the cost of buying trees; the cost of planting the trees in the land.
That situation persists despite constant recommendations from the Industry Commission that the federal government address those anomalies. That situation does not exist in relation to grapes, and I assume that is only because the bureaucrats and centralists of Canberra enjoy a tax break on their wine. I would certainly assume that it would not apply to the establishment of piggeries.
I shall be writing to Senator Collins expressing my concerns in relation to this seemingly discriminatory tax arrangement, and I trust that honourable members opposite will use what little influence they have with their federal counterparts to assist in some way in readdressing the current tax arrangements.
Page 236
Last updated: 09 Aug 2016