Money Doesn’t Come Without Guidance ...
The Australian Government announced accelerated depreciation arrangements in the 2015-16 Federal budget that will provide farmers an incentive to invest in their businesses, and more effectively store and use water and fodder to better manage periods of drought. The start date of this measure has been brought forward to 12 May 2015 from 1 July 2015.
In the previous arrangements, the primary producers can only depreciate fodder storage assets over a period up to 50 years and depreciate water facilities over three years and fencing assets over a period up to 30 years.
However, the new arrangement allows all primary producers to immediately depreciate new water facilities and fencing assets, and depreciate over three years the cost of fodder storage assets.
Farmers are qualified as a small business if they have the aggregated annual turnover of less than $2 million and are therefore also eligible to immediately deduct all asset purchases up to $20,000.