Immediate deductions for fodder storage assets
Primary producers may be able to immediately deduct (rather than depreciate over three years) the cost of fodder storage assets, such as silos and hay sheds used to store grain and other animal feed, making it easier for farmers to invest in and stockpile fodder. Primary producers who store fodder for sale may also be entitled to this deduction.
This measure is available for fodder storage assets first used or installed ready for use on or after 19 August 2018.
For more information, refer to the
government’s media release.
Extension of the $20,000 Instant Asset Write-off to 30 June 2019
As announced by the then Treasurer, the Hon. Scott Morrison MP, on 28 May 2018, the Australian Government has extended the $20,000 instant asset write-off to 30 June 2019.
This measure allows small businesses with a turnover of less than $10 million, including those in primary production, to continue claiming a full deduction for business assets in the year they are purchased and/or installed, helping businesses to improve their planning and cash flows.
For more information, refer to the
Treasurer’s media release or the
Australian Taxation Office’s website.
Income tax averaging
Primary producers can, from 1 July 2017, re-commence income averaging 10 years after opting out. Prior to this amendment, a primary producer who had opted out of income averaging could not return to the arrangement*.
Primary producers who opted out of income averaging for the 2006–07, or an earlier financial year, will be opted back in to income averaging for the first financial year after 2016–17 in which their taxable primary production income is greater than that for the previous financial year.
The legislative amendment enacting this change, the Tax and Superannuation Laws Amendment (2016 Measures No. 2) Act 2017 received Royal Assent on 28 February 2017. More information is available at Tax averaging for primary producers (Australian Taxation Office website).
* Except in special circumstances. See
Choosing to restart averaging in certain circumstances for more information.
Primary producers affected by drought and natural disasters
The Australian Taxation Office can help people affected by drought and other natural disasters with:
- more time to pay
- waiving penalties or interest charged at a time you were affected by drought
- payment plans with interest free periods
- adjusting pay as you go (PAYG) instalments to better suit your circumstances
- tax incentives for primary producers.
More information is available at the Australian Taxation Office website, on:
In special circumstances, the Commissioner for Taxation may release individuals from payment of income tax, fringe benefits taxes and some other taxes where it is shown that payment would cause serious hardship.
The Tax Office will look at circumstances on a case–by–case basis.
There are a number of taxation measures and concessions available to drought–affected primary producers. These include:
There are also a number of other tax concessions available to primary producers, regardless of their location or if they are in hardship, that can be broadly classified as
tax deductions and
Primary producers, given their highly variable income streams and remote location, can use these mechanisms to reduce their assessable income, and therefore pay less tax. These include:
These relate to expenses that directly facilitate earning income and reduces assessable income. These include:
These relate to a variety of assistance measures for individuals such as deferrals of tax liability that can help to reduce an individual’s assessable income in the current financial year. These include:
For further information on these measures contact the
Australian Taxation Office on 13 28 66.
- For drought assistance, contact the Australian Taxation Office Drought hotline on 1800 806 218 or visit Drought help on the Australian Taxation Office website for further information.
- For small business and primary producer assistance, phone the Australian Taxation Office business enquiries line on 13 28 66 or visit Primary producers on the Australian Taxation Office website.