Taxation measures - Australian Taxation Office

​​​​​​Immediate deductions for fodder storage assets

As announced by the government on 19 August 2018, primary producers will 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.

This measure will be available for fodder storage assets first used or installed ready for use from 19 August 2018, noting legislative changes will be needed to give it effect.

For more information, refer to the government’s media release.

​​​​​​A better tax system for farmers

Income tax averaging

Extension of the $20,000 Instant Asset Write-off to 30 June 2019

As announced by the Treasurer, the Hon. Scott Morrison MP, on 28 May 2018, the Australian Government will extend the $20,000 instant asset write-off to 30 June 2019. The government will introduce and pass amending legislation during the 2018-19 financial year.

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.

​​​​​A better tax system for farmers

​​​​​​Income tax averaging

As announced in the Agricultural Competitiveness White Paper, 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 on the Australian Taxation Office website.

* Except in special circumstances. See Choosing to restart averaging in certain circumstances for more information.

Farmers affected by drought and natural disasters

The Australian Taxation Office can help people affected by drought and other natural disasters by:

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:

Taxation issues

​​​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 offsets, tax deductions and concessional treatments.

Tax offsets

Primary producers can use these mechanisms to reduce their assessable income, and therefore pay less tax. These include:

Tax deductions

These relate to expenses that directly facilitate earning income and reduces assessable income. These include:

Tax concessions

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.

More information

  • Phone the Australian Taxation Office on 13 28 66 or
  • Visit Primary Producers on the Australian Taxation Office website.​​​​​​​