The Australian, State and Territory Governments have reached new agreement on the administration of genetically modified (GM) canola crops.

Australian Minister for Agriculture, Fisheries and Forestry Peter McGauran said the decision was a breakthrough in a long debate between governments.

For the first time, a meeting of the Primary Industries Ministerial Council (PIMC) has adopted a threshold level of 0.9 per cent GM in canola grain.

Mr McGauran said this was the level used across the European Union and was the strictest level of Australia's major trading partners.

PIMC has further agreed that the threshold level for commercial seed for sale will be 0.5 per cent for the 2006 and 2007 seasons and, thereafter, the intention is to set a limit of 0.1 per cent.

"Australian farmers need to be able to improve their productivity and competitiveness.

"Our farmers will now retain access to our major markets, but those who want their crops to remain GM-free, will be able to do so," he said.

Mr McGauran reiterated that recent detections of GM in Australian canola had been well inside the strict tolerance set by the Ministerial Council.

"Where an individual State wishes to adopt a GM-free standard, it is able to do so with the PIMC outcome requiring that it develops effective testing, standards and protocols for the supply chain.

"This move by our governments will maintain Australia's presence as a significant domestic and global supplier of quality canola," Mr McGauran said.

He said consumers would continue to enjoy top quality product which was safe for the environment.