Depreciation for farmers

Depreciation for farmers brought forward

The May Budget provided that from 1 July 2016, Australian farmers would be able to claim a tax deduction on capital expenditure incurred on:

• water facilities;

• fodder storage assets; and

• fencing.

Farmers would be able to fully deduct the cost of water facilities and fencing in the year they were purchased, and deduct the cost of fodder storage assets over three years.

The Treasurer has now announced that this measure will be brought forward to acquisitions of these assets after 7.30pm 12 May 2015.

Farms with turnover of less than $2 million are also eligible to immediately write-off all asset purchases up to $20,000.