Joyce welcomes Senate passage of farm depreciation measures
16 June 2015
Minister for Agriculture, Barnaby Joyce, has warmly welcomed the passage of the Coalition Government’s tax depreciation measures for farmers announced as part of this year’s budget.
The accelerated depreciation measures for all primary producers regardless of turnover—which will see immediate write-off for new fencing and water infrastructure, and write-off over three years for fodder storage—started from 7:30pm Budget night, the 12th of May 2015 and is ongoing with no expiry date.
“These accelerated depreciation measures are policies originating from our Agricultural Competitiveness White Paper, and the measures will encourage Australian farmers, regardless of the size of their farm enterprise, to invest in their businesses to better prepare for drought and improve their productivity,” Minister Joyce said.
Minister Joyce said that the Coalition Government had listened to Australian farmers and clearly understood what was needed to strengthen and grow their farming enterprises, and to help build the soft-commodity sector that will deliver the jobs and prosperity for the future.
“As a result of these measures, our farmers will now have more confidence to make the necessary investments in their farm businesses. It means more incentive to either build the water infrastructure they need, or to better manage their land through new fencing or to have the ability to store more fodder in case of drought,” Minister Joyce said.
“Accelerated depreciation measures will also encourage farmers to invest in drought preparedness when they are in a financial position to do so.
“The measures passed by the Senate on Monday will not only provide a massive benefit for our farmers, who can now claim the expense deductions, but also for the many rural industries right across Australia that support the construction of the fences, water infrastructure and storage facilities, and I expect these benefits to flow right throughout our regional communities.”
The accelerated depreciation measures for primary producers is in addition and separate to the instant write-off for purchases up to $20,000 for all Australian small businesses with a turnover of less than $2 million a year, and which operates for the current and the next financial years only.
“These measures are another example of having a government that engages with the agricultural community and delivers the right policies to enable growth in this key sector of the Australian economy,” Minister Joyce said today.