Instant Asset Write Off for Small businesses

Farm Shed Tax Deduction, Hay Shed Tax Deduction and Fodder Assets

There has never been a better time for many farmers to build a shed or incur a capital expense at tax time. Hay farmers have been taking advantage of deductions for fodder storage assets at a record clip, but now farmers are encouraged to get financial advice to confirm eligibility for machinery sheds, feedlots, dairy sheds and other assets as part of the latest Australian government stimulus package for instant asset write offs.

Almost 1 year ago, the Treasurer, the Hon. Josh Frydenberg MP, announced the instant write asset write off increase by $5000, from $25,000 to $30,000 for businesses with turnover up to $30 million. Amidst the latest stimulus package announced in the last week – that has been boosted to assets costing up to $150,000 for businesses with turnover up to $500 million. The thresholds apply not just to farmers but all types of businesses at increasing scale and size.

We recognise that it is a particularly good time for primary producers in the southern regions of Australia who had a booming 2019 grain harvest and a record income year. Many farmers have said to us they’ve never seen so many hay stacks in the paddocks across the Mallee and Wimmera regions of Victoria and South Australia. Hay prices have come down in many regions but still remain historically high and a lot of grain farmers cut hay following frost damage late in the season.

The immediate deduction for fodder storage assets also still applies and is available for an expense on a fodder or hay shed installed on or incurring the expense after 19 August 2018. Farmers can deduct (instead of depreciating) hay sheds that are used to store fodder for sale. 

Entegra are the best choice for your next shed purchase with our operations giving priority to farm sheds and we’re able to manufacture a a hay shed kit within 4 weeks (we need to check each sales enquiry with our production schedule). We also actively support our clients to claim the tax deduction and if you want us to manufacture your shed before the end of financial year give us a call now 130 296 206.

We’ve kept the entry level 4 bay hay shed at 2019 prices – $49,980 excluding GST and installation. We’re able to also get you 10% off water tanks and we can price installing box gutters to save rainwater for your spraying program. As a primary production business there really hasn’t been a better time to claim a deduction against your cash flow.

There are further incentives for farmers in Queensland and NSW that can also help farmers in those states: 

NSW

The state government has a $1 Billion Farm Innovation Fund as part of the drought relief package and so far have allocated about half of that funding for the current financial year. Farmers are able to get low interest loans for permanent on-farm infrastructure. 

For more information:

Farm Innovation Fund

QLD
The Palaszczuk Government is supporting Queensland farmers with the Queensland Rural and Industry Authority (QRIDA Drought Support). Farmers can get low interest sustainability loans of up to $1.3 million that improves the productivity of their operations, including for feeding and fodder production. 
For more information:

Funding, grants and assistance for agricultural industries

There is also information from the Australian Tax Office

Instant asset write-off

Entegra encourages clients to seek independent financial advice to confirm eligibility for grants and incentives

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