Australian agriculture minister Warren Truss announced yesterday [Tuesday] that a levy of A$0.03 (US$0.017) will be imposed on every kilogram of domestic sugar sold over the next five years.
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The levy will be applied to all domestic sugar sales, while sugar used to make products for the export market will be subject to a rebate. The levy is expected to raise some $100m, which will be used to fund an industry assistance package.
Truss revealed more information about a federal/state financial package valued at some $150m. The federal government will provide a 50% interest rate subsidy over two years on loans of up to $50,000 to replant cane, while farmers with loans under a Queensland government cane plan will still be eligible for federal cheap loans.
An exit grant of up to $45,000 will also be available from 1 February next year for cane growers wishing to leave the industry. If the grower plans to diversify into other crops, the grants will be taxable. If he or she wishes to sell property and leave agriculture altogether, no tax will be payable.
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By GlobalData
