New measures to encourage farmers to upgrade their infrastructure have been brought forward by the Federal Government.
The Nationals Member for Gippsland Darren Chester said farmers can now claim a tax deduction on all capital expenditure on water facilities, fodder storage assets and fencing incurred since the 2015 Budget was handed down on May 12, 2015.
“Farmers can fully deduct the cost of water facilities and fencing in the year they are purchased and deduct the cost of fodder storage assets over three years,” Mr Chester said.
Mr Chester said farmers were able to access immediate benefits, in the same way small businesses have been able to benefit since Budget night.
“Small businesses are able to claim accelerated depreciation on business assets costing up to $20,000. Farms with turnover of less than $2 million qualify as a small business and are therefore also eligible to immediately write-off all asset purchases up to $20,000,” Mr Chester said.
“Our decision to bring forward the start date of accelerated depreciation for all farmers, regardless of the size of their farm, allows them to prepare for drought and invest in the productivity of their farms immediately.
“I urge local farmers to support local jobs by making any purchases from Gippsland businesses.”
Further measures to support Gippsland farmers will be announced in the forthcoming Agricultural Competitiveness White Paper.
For information on the new measures go to www.agriculture.gov.au/drought