18 June 2004
This message has been issued by The Co-operative Federation of Western Australia as part of its Member Services and Business Awareness programs.
Back on the agenda – ITAA section 120
The Federation has written to The Hon Kim Chance MLC in his capacity as Minister for Agriculture, encouraging the State Government to introduce legislation to allow co-operatives to access tax effective funding.
Existing and start-up Western Australian co-operatives are currently disadvantaged compared with other states when raising funds to acquire assets required for the purpose of carrying on the business of acquiring commodities or animals from their shareholders.
“Bringing WA into line with the rest of Australia is a critical step if we are to compete on a level playing field” said John Carstairs, Chairman of the Co-operative Federation.
State legislation is required to provide co-operatives with the opportunity to lower their cost of funds by access to section 120 of the Income Tax Assessment Act.
“By making access to section 120 funding possible in WA we expect to see new co-operative ventures emerge and existing co-operatives expand their role, which will give a much needed boost to the State’s rural regions” said Mr. Carstairs.
It is understood recommendations on the matter are currently awaiting Cabinet approval. An early decision could see legislation introduced into Parliament this year.