Farmers are relieved by the Federal Government’s decision to bring forward the start date for new farm tax breaks.
On 12 May 2015 the government announced that farmers would be able to deduct the full cost of water facilities and fencing in the year in which they were purchased, and depreciate the cost of fodder storage assets over three years. However, those tax breaks were not due to start until the 2016-17 year.
This week government announced that those changes would now be brought forward and made available immediately. Once introduced, it will mean that farmers can claim a tax deduction on all capital expenditure on water facilities, fodder storage assets and fencing incurred since May 2015.
The decision allows farmers to invest in the productivity of their farms immediately.
It is also expected farmers will benefit from wider small business tax breaks in the budget, including immediate tax write-offs for business purchases of items each worth up to $20,000.