Fishing/aquaculture industries can claim part of licence fee as tax deduction

8/3/96

Western Australia's $800 million commercial fishing and aquaculture industries will now be able to claim the portion of their licence fee used for research and development as a tax deduction.

Fisheries Minister Monty House and WA Fishing Industry Council (WAFIC) chairman John Cole today announced that part of the research and development costs incorporated into industry licence fees would be eligible for 150 per cent tax deductibility for those commercial fishermen who operate as a registered company.

Mr House said the deduction would be available to about half the State's commercial fishing fleet.

"This is a landmark decision for the industry that will reduce the cost of essential research and development," he said.

"This will also encourage additional research to increase the value of the State's catch and boost export potential."

The Fisheries Department's research laboratories at Waterman have lent further support to the plan by becoming a registered research agency, allowing both large and previously ineligible small research projects managed by the laboratories to become fully deductible.

"WA was the only State to be granted the tax deduction and the concession should be available by the next financial year," Mr House said.

He congratulated the WAFIC for successfully negotiating the deal with the Australian Taxation Office over the past 18 months.

WAFIC chairman John Cole said the concession was a win for WA professional fishermen.

"WA is a world leader in applied fisheries research," Mr Cole said.

"Since 1968 much of this research has been funded from licence fees paid by the industry.

"Now the WA fishing industry is on an equal footing with other primary industries in being able to claim the full eligible tax deduction for the research carried out on its behalf."

A tax consultant and tax lawyer used during the negotiations were funded by the Fisheries Department, WAFIC and Department of Commerce and Trade.

Mr House said the Fisheries Department was now working closely with the WAFIC Research and Development Committee to ensure that all eligible research was carried out in accordance with tax office requirements.

The committee would take care of the administrative details as a service to the industry and assist in making claiming deductions as simple as possible.

Details on how to manage the new concession were now being finalised by the Fisheries Department and WAFIC.

Media contact: Nicole Trigwell 481 2044