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Letter to Shareholders re Dividend Investment Plan

Document date:  Thu 03 Oct 2002
Published:  Thu 03 Oct 2002 15:56:08
Document No:  224359
Document part:  A
Market Flag:  N
Classification:  Letter to Shareholders

WESFARMERS LIMITED                            2002-10-03  ASX-SIGNAL-G

HOMEX - Perth                                                         

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LETTER TO SHAREHOLDERS

Wesfarmers Limited (Wesfarmers) introduced its Dividend Investment
Plan (Plan) to shareholders in 1985. Under the Plan, shareholders are
able to invest all or a portion of their dividend entitlements in new
shares in the company.

Wesfarmers proposes to amend the terms of the Plan with effect from 8
November 2002.

The proposed amendment which will be of particular interest to
shareholders, is in relation to dividend entitlements under the Plan.
Previously, where the dividend entitlement did not translate to an
exact number of shares, the number of shares issued to a participant
was determined by rounding the dividend entitlement to the nearest
whole number of shares. However, as the value of Wesfarmers shares
has increased, the amount foregone by some participants (due to
rounding down of their entitlement) has increased. The proposed
amendments will remove the rounding provisions from the Plan and
allow cash balances to be retained until subsequent issues under the
Plan.

Under the proposed amendments, participants will receive the maximum
number of shares that can be fully paid for from the dividend
entitlement and any cash balance remaining will be held on account
for the participant. For subsequent issues under the amended Plan,
the number of shares received by the participant will be based on the
dividend entitlement and any accrued balances.

If a participant decides, or is deemed not to participate in the
Plan, any balances remaining at the next record date will be paid to
the participant. If the Plan is suspended, Wesfarmers has the
discretion whether to pay out the balances to participants or retain
those balances until reinstatement of the Plan.

The other proposed amendments to the Plan are minor changes in order
to update the terms of the Plan to reflect recent changes in the
terms used in the Corporations Act 2001 and the Listing Rules 
of Australian Stock Exchange Limited (ASX) and to clarify the 
procedures and effect of suspending the Plan.

A complete copy of the amended terms of the Plan has been released to
the ASX. You may obtain a copy of the amended terms from the ASX, or
from the Company's website, www.wesfarmers.com.au, or by contacting
the share registry, Computershare Investor Services Pty Limited on
(08) 9323 2000.


L J Kenyon
COMPANY SECRETARY

A copy of the full announcement, including the amended Terms and
Conditions of the Dividend Investment Plan, is available for
purchase from ASX Customer Service on 1 300 300 279.