The Government has recently announced that it will assist farmers with drought proofing their properties by allowing all primary producers to immediately deduct the cost of fodder storage assets, rather than claiming the depreciation over 3 years. This offers a significant tax incentive on investment in fodder storage items such as silos, grain storage, liquid feed supplement storage tanks, hay sheds etc.
You will be eligible to claim a deduction for the full cost of a fodder storage asset if you:
- Incurred the expense either
- On or after 19 August 2018
- before 19 August 2018 and it was first used or installed ready for use on or after 19 August 2018
- Mainly use it to store fodder
- Use it in a primary production business on land in Australia, even if you are only a lessee of the land
- Claim the deduction in the year you incurred the expense
Our Tax and Accounting specialists are able to assist you with any review of your current situation and determine where you may have a deduction entitlement.
Please contact us directly for more information or to discuss your personal situation.