Instant asset write-off a resilience booster for farmers during drought

The National Farmers’ Federation (NFF) has welcomed the passing of legislation to extend the $20,000 instant asset write-off for another year.
“The instant asset write-off is an effective way to assist farm businesses to build resilience by incentivising investment in farm equipment and machinery valued at $20,000 or less,” NFF President Fiona Simson said.
“At a time when farm business resilience is stretched to the limit managing drought, the measure is a sensible taxation reprieve for farmers.”
The $20,000 write-off complements new accelerated depreciation measures announced as part of the Federal Government’s drought support package. Under the measures, farmers can claim costs expended on fodder storage, such as silos and hay sheds, after one year as opposed to three.
Ms Simson said the NFF would continue to call for taxation incentives to support farm businesses that manage greater environmental variability than most other businesses.
“We recommend the Government permanently allow the first $5,000 of all investments by small businesses to be immediately depreciated, with the remainder of asset values to be depreciated according to existing rules.
“We’re also calling for the retention of the specific primary producer depreciation and capital write-off provisions that apply to Landcare expenses, water improvements, fencing and fodder storage assets.
“These provisions recognise the environmental benefits farmers deliver on behalf of the broader community, have been identified by our farmers as the best drought preparation measure and should be retained in perpetuity,” Ms Simson said.