Depreciation for Wannon farmers brought forward
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.
Wannon small businesses got a boost on Budget night being able to immediately 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.
Following broad consultation across Wannon, stakeholders told us they wanted to get on with building fences, dams and fodder storage as soon as possible.
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.
The measure builds on our more than $333 million in targeted support for farmers and communities impacted by drought announced by the Prime Minister on 9, May in Longreach, Queensland, taking the Government’s total commitments to farmers in this year’s budget to more than $400 million.
Supporting Wannon farmers in the hard times and boosting the competitiveness of the agriculture sector is not just good for the economy, it is also the right thing to do.
Bringing forward these changes to begin from 1 July 2016 to 12 May 2015 is estimated to cost $72 million over the forward estimates.
For information on the new drought support measures go to www.agriculture.gov.au/drought
Media contact: Cate Mercer-Grant 03 5572 1100 or 0408 564 232