Proposed tax changes in the upcoming Federal Budget threaten to undermine farm investment.
The farming sector is calling on Treasurer Scott Morrison to preserve instant capital write-off provisions for small business in the 2017-2018 Budget.
Currently, all small businesses (including farms) can immediately depreciate capital investments of $20,000 or less. In addition, farmers can immediately depreciate expenses for Landcare activities, fencing, water and fodder storage upgrades.
Combined, these measures have enabled farmers to build and renew their asset base and grow their productivity.
This couldn't come at a better time, as many parts of the country recover from polonged drought, while other areas are experiencing devastating flooding.
When farmers are able to invest like this, everyone benefits. Starting with small farming communities which see a surge in local commerce, and ending with all Australians who gain from growth in our second largest export industry.