Pearce 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 at 7:30pm on 12 May.
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.
Federal Member for Pearce Christian Porter said this comes on top of the Budget announcement that farms with a turnover of less than $2million 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 Pearce, I understand that farmers want to get on with investing in capital infrastructure to develop their business,” Mr Porter said.
“Farmers want to be able to build fences, dams and fodder storage and deduct the costs as soon as possible.
“The Coalition’s 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.
“Supporting Pearce 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.”
For information on the new drought support measures go to www.agriculture.gov.au/drought