Federal Government's MIS Decision puts Organic Olive Exports at Risk

Media Release - 9 February 2007

The announcement made on 6 February by the Minister for Revenue, Peter Dutton, regarding non-forestry managed investment schemes has jeopardised the growth of an emerging WA export business.

Five year growth projections of organic extra virgin olive oil produced by Kailis Organic Olive Groves have been slashed by 30 percent, due to the shock decision made by Federal Government to stop providing tax incentives for non forestry managed investment schemes.

This will result in $40 million of Australian export revenue lost.

"This is an industry now worth $100 million (would that be right?) which would have to completely review its business plans due to an ill-informed decision, said Mark Kailis, Managing Director of Kailis Organic Olive Groves.

Mr Kailis also explained that certainty is critical to the development of new industries.

"Of great concern is the absence of any process of consultation regarding these changes, despite earlier assurances from the Government.

"There has been no opportunity for the industry and other related parties to make submissions or have their say - and as a result, we have ended up with a very poor outcome.

"The government needs to re-think this decision and clarify the tax arrangements so that we can see an expansion rather than a scaling back of the development of these vital new industries in regional Australia."