_%> AUTHS AL& A'f
PRIME MINISTER
FOR MEDIA MONDAY, 14 APRIL, 1980
DROUGHT RELIEF
The Commonwealth is taking a major initiative to assist
primary producers to ensure water supplies and to encourage
them to increase their capacity to withstand drought.
At present non-plant capital expenditure on conserving or
conveying water on rural properties such as earth tanks,
wells and bores, and earth channelling for irrigation may
be written off over a period of ten years. The cost of
plant items such as pumps is depreciable over the life
of the asset.
As from today these existing taxation concessions for the
conservation of water, the equipping of bores, wells and
dams, an-d the conveyance of water on rural properties, will
be extended to provi7de that all such expenditure will be an
allowable deduction " for taxation purposes in the year in which
the expenditure is inrcurred. This will provide an important
incentive for farmers to develop additional water storage
and farm. reticulatizn-systems.
Those items present~ v eligible for the investment allowance
will continue to be eligible for it in addition to the new
concess on now announced.
The necessary amending legislation will be introduced as a
matter of urgency.
The announcement of these measures at this time and their
application from today underlined the Government's growing
concern about the fact that a large part of the continent
is suffering a very dry period. The position is one of grave
concern. If Autumn rains fail to eventuate over a large
part of Australia, rural areas will be left in dire straits.
In addition, there is Commonwealth agreement to extended
measures for drought relief in New South Wales.
These measures will cover: the provision of subsidies to
Councils and other organisations able to provide emergency
water supplies; and the extension of existing subsidies to
primary producers to assist them in meeting special costs
incurred in the transport of emergency water supplies
to their properties. / 2
2-
Precise details of the new arrangements will be worked out
between officers of the Commonwealth and New South Wales
Government. Relief of drought represents a very important part of
Commonwealth/ State co-operation. We stand ready to listen
to matters put to us by the States.
The extended measures announced today will, of course, apply
in future in all States and Territories where similar
situations occur. 000---