Australian farmers can now access tax relief sooner, as a part of the Government’s $1.8 billion plan to help drought-affected farmers.
Under legislation which passed through the Senate last week, primary producers can now immediately deduct the cost of fodder storage assets, such as silos and hay sheds, used to store grain and other animal feed.
The changes, effective from 19 August 2018, will assist primary producers, by making it easier to stockpile fodder. They will no longer have to track the depreciation of fodder storage assets for more than one year for tax purposes.
This initiative complements the $20,000 instant asset write-off already available for small businesses. Unlike the write-off for small businesses, there is no dollar cap on the cost of fodder storage assets that can be instantly depreciated by primary producers.
Helping our farmers and farming communities is a top priority of the Coalition Government. This tax relief is one of several measures forming part of our plan to provide more help for drought-affected farmers. It brings the total of Commonwealth assistance to $1.8 billion.
Other initiatives include:
- additional funding for the Drought Communities Program;
- extending drought loans through the Regional Investment Corporation; and
- creating a dedicated drought preparedness round for the National Water Infrastructure Development Fund.
We will continue to engage with farmers and communities in drought-affected areas to ensure our response meets their needs, including through the National Drought Summit to be held on 26 October 2018.