Additional Tax Deductions for Farmers

(0 Bytes)

Oct 10, 2018 | Posted in Tax
Written by

There is now further relief for primary producers to allow immediate deductions for fodder storage assets. The 2015-2016 Budget proposed the introduction of legislation that allows primary producers to deduct the capital expenditure of fodder storage assets over three years instead of their effective lives.

Now, because of this most recent change, it is possible to deduct the entire amount in the year of expenditure.

The Treasury Laws Amendment (Supporting Australian Farmers) Legislation 2018 received Royal Assent on 3rd October 2018. The purpose of the legislation is it assist primary producers to invest in the stockpile of fodder to better drought-proof their properties.

The new rules apply to assets first used or installed ready for use on or after 19th August 2018.

A fodder storage assets main purpose must be to store fodder for the primary producer’s own livestock. The typical examples of fodder storage assets that will be immediately deductible are:

  • Silos
  • Liquid feed supplement storage tanks
  • Bins for storing dried grains
  • Hay sheds
  • Grain storage sheds
  • Above ground bunkers

The assets purchased are required to be used primarily and principally in the primary production business conducted on Australian land.

The availability of the immediate deductions is not restricted to small businesses but to all businesses that are classified as primary producers.

If you have any questions regarding a new asset purchase, and you want to check if you qualify for the deduction please contact your Ulton Advisor.

Source: Treasury Laws Amendment (Supporting Australian Farmers) Legislation 2018
https://www.aph.gov.au/Parliamentary_Business/Bills_Legislation/Bills_Search_Results/Result?bId=r6176&utm_source=The+Tax+Institute+Members+-++TaxVine&utm_campaign=358396de0f-Taxvine151217_COPY_01&utm_medium=email&utm_term=0_d13c4c9225-358396de0f-98149609
Accessed 28/09/2018

DarylCorpe
,

 
Print this page Tell A Friend Add to Favorites