Queensland Parliamentary Library
Research and Information Service
CLIENT INFORMATION BRIEF
FOR:
Mr Ian Rickuss MP
ATTENTION:
Erika Haines
SUBJECT:
Turf Production – Primary Industry Status
DATE:
16th November 2011
1. Introduction
A request was made for information regarding the ‘requirements for obtaining primary
industry status’ vis-à-vis the turf production industry. It was also requested that
information be provided on State government and local government grants or
assistance to primary producers. The Australian Tax Office classifies certain groups
of businesses as primary producers and the guidelines for determining the meaning
of this classification are included. The Queensland government provides assistance
for rural horticultural producers, which the turf production industry would be able to
apply for providing the other eligibility criteria are met. That assistance is
summarised below. Local government grants are made to not for profit and
community organisations rather than for businesses.
2.
Queensland assistance for rural producers
QRAA is a statutory authority of the Queensland government administering
Government financial programs and services. Their website details a variety of loans
and natural disaster assistance measures available to rural horticultural producers
such as the Turf Industry.
Full details regarding the loans and disaster assistance are found at the following
link:
http://www.qraa.qld.gov.au/index.php?option=com_qraa&audience=3&region=31&in
dustry=11&Itemid=89
A summary of the loans and assistance available is given below:
There are 2 loan types:
Prepared at client request. The responsibility for the use of the contents of this report or its further distribution either in
whole or part lies with the Member. This paper has been prepared to support the work of the Queensland Parliament
using information publicly available at the time of production. The views expressed do not reflect an official position of
the Queensland Parliamentary Library, nor do they constitute professional legal opinion.
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1) ‘First start loan’ for establishing a business. These loans are for up to $650,000.
There are a number of eligibility criteria, including the requirement that financial
hardship be proven.
2) ‘Sustainability loan’ for established businesses. These loans are for businesses
that have been operating for at least 2 years. They provide up to $650,000 and
again, one of the eligibility criteria is that financial need must be demonstrated.
Three types of natural disaster assistance are outlined:
1) Exceptional disaster assistance - for businesses affected by the December 2010/
January 2011 floods and Cyclone Yasi. This provides a loan and grant package of up
to $650,000.
2) Natural disaster assistance - for bushfire or flood or other non specific disaster.
This provides a low interest loan of up to $250,000.
3) Special disaster assistance – for businesses affected by the Queensland floods
December 2010/ January 2011. This provides grants of up to $25,000.
3.
Australian Tax Office
The Australian Tax Office (ATO) ruling TR 97/11 considers the meaning of ‘business’
of ‘primary production’. It is a complicated ruling, best read in full as opposed to
being summarized. The ruling is available at the following link ‘Am I carrying on a
business of primary production?’
http://law.ato.gov.au/atolaw/view.htm?Docid=TXR/TR9711/NAT/ATO/00001&PiT=99
991231235958
The ATO notes under a heading titled ‘Who is a Primary Producer?’1
A Primary Producer is an individual, trust or company carrying on a primary
production business. You are a primary producer if you carry on a business of:Plant and Animal Cultivation
- Cultivating or propagating plants, fungi or their products or parts (including
seeds, spores, bulbs and similar things) in any physical environment.
4.
Queensland Department of Primary Industries and Fisheries
The Queensland Department of Primary Industries and Fisheries classifies Turf
Production as ‘lifestyle horticulture’ but this is not a legal definition for the purposes of
government assistance or taxation.2
Roxane Horton
Research Officer
1
http://www.ato.gov.au/businesses/content.aspx?doc=/content/33519.htm&pc=001/003/015/001/009&
mnu=0&mfp=&st=&cy=
2
http://www.dpi.qld.gov.au/26_16594.htm
Prepared at client request. The responsibility for the use of the contents of this report or its further distribution either in
whole or part lies with the Member. This paper has been prepared to support the work of the Queensland Parliament
using information publicly available at the time of production. The views expressed do not reflect an official position of
the Queensland Parliamentary Library, nor do they constitute professional legal opinion.
Queensland Parliamentary Library
Research and Information Services Page 2
Commissioned Research Team
______________________________________
QUEENSLAND PARLIAMENTARY SERVICE
Queensland Parliamentary Library
Parliament House
Cnr George and Alice Streets Brisbane Qld 4000
Prepared at client request. The responsibility for the use of the contents of this report or its further distribution either in
whole or part lies with the Member. This paper has been prepared to support the work of the Queensland Parliament
using information publicly available at the time of production. The views expressed do not reflect an official position of
the Queensland Parliamentary Library, nor do they constitute professional legal opinion.
Queensland Parliamentary Library
Research and Information Services Page 3