In the lead-up to the 2017-2018 Budget, the National Farmers’ Federation (NFF) is calling on Treasurer, Scott Morrison to preserve instant write-off provisions for small businesses.
To send a strong message, we need the support of farmers and the businesses that support them.
Currently, all small businesses (including farms) can immediately depreciate capital investments of $20,000 or less. As it stands this measure will sunset on 30 June 2017.
In addition, farmers can immediately depreciate expenses for Landcare activities, fencing, water and fodder storage upgrades.
The instant write-off provisions were welcomed by the farm sector when they were introduced in 2015-2016. The initiative has enabled farmers to invest in new machinery, equipment and farm infrastructure.
A large number of farmers I speak to have taken advantage of these measures over the last 12 months, but many also have further upgrades planned which won’t be economical without the right tax settings.
Upgrades to farm machinery and infrastructure assist to increase efficiencies and productivity – two factors which are key to the continued growth of our industry.
Incentives to replace or upgrade farm equipment could not come at a better time, as many parts of the country recover from prolonged drought and others start to rebuild from devastating flooding.
In this Budget we are asking the Treasurer to retain the instant-write off and other accelerated depreciation measures beyond 30 June 2017.
To join the call to #savethewriteoff we are asking everyone with a stake in our rural economies to visit the campaign page and send a pre-prepared email Mr Morrison.
Our sector is a powerhouse of the national economy. For the first time, in 2016-2017 agriculture is forecast to achieve a production value of more than $60 billion. The NFF believes our sector can achieve a production value of $100 billion by 2030.
However, to achieve this growth we need a tax framework that supports our success not constrains it.
On behalf of the farm sector, I call on Mr Morrison to acknowledge the contribution our industry makes to the national economy and back investment in its future.