Tax Planning For Primary Producers For Year Ended 30 June 2015

The Treasurer recently announced that from 12 May 2015, primary producers will be able to claim an immediate full tax deduction for any capital expenditure on water facilities and fencing, rather than from 1 July 2016, as originally announced. Additionally, fodder storage asset costs can now be deducted over three years; this includes all hay and grain sheds.

These deductions are available to all primary producers, regardless of size and the value of the expenditure and are very attractive incentives for agribusiness.

In prior years, deductions would have been limited to three years for water assets, up to 30 years for fencing and 50 years for fodder storage. Thus, these new measures will have significant benefits for Australian farmers.

With the recent rise in cattle and other commodity prices, primary producers could well find themselves with sizeable income tax bills for the 2014/15 Financial Year if careful planning is not undertaken. These Government incentives provide an excellent opportunity to save significant tax this year.

If you have not already done so, it is important to have your Accountant prepare an estimate of your taxable income for the year to look at tax minimisation options.

A review of your tax position allows us to assist with the following:



• Estimate the amount of income tax payable for this year, and the amounts and timing of tax instalments for next year
• Determine the optimum mix of salary (and tax to be withheld) and superannuation contributions to be paid this year
• Advise on tax planning initiatives that may be undertaken to minimise income tax for the current year

If you think your income may be higher than usual, you need to act now. Please phone to make an appointment to see us as soon as possible.

To achieve the best result, it pays to look at your complete financial picture and how the different pieces work together. Our knowledge and experience can help you achieve the maximum benefits possible.

Managing your tax is a very important part of running a business, so please give this the time it deserves.

We look forward to seeing you soon.