- Accelerated depreciation for fodder storage begins today, 1 July
- Also as of today, income from forced sale of livestock will be treated differently under Farm Household Allowance
- Regional Investment Corporation to offer restocking and replanting loans from later this year
Australian farmers will be able to claim accelerated depreciation on new fodder storages as of today, following changes made by the Coalition Government last year.
And those receiving Farm Household Allowance who are forced to sell livestock during the drought may continue to receive FHA payments if the profits are deposited into a Farm Management Deposit account.
Minister for Drought David Littleproud said the accelerated depreciation meant farmers could this financial year claim the entire depreciation for feed storages built last year.
“Farmers need to store more feed for their animals during drought, and we’re helping cover the cost of new sheds, silos and other storages,” Minister Littleproud said.
“This is one more way we can help farmers during drought.
“The accelerated depreciation for fodder storages joins existing measures to help farmers depreciate water infrastructure and fencing costs.
“Also today, those farmers receiving Farm Household Allowance who sell livestock due to hardship such as drought will not have that affect their FHA payment, so long as they put the sale money into their Farm Management Deposit.
“This is a common sense step to make sure farmers aren’t penalised for doing the right thing and will help our producers set some money aside for re-stocking when the drought breaks.
“We continue to help farmers get through this drought with $6.3 billion of support. Our support is spread right across federal areas of responsibility - Farm Household Allowance, Emergency Water Infrastructure Rebate, Rural Financial Counselling, pests and weeds management, concessional loans and the Drought Communities Program.
“We’ve also extended the instant asset write-off for small businesses to 30 June 2020 and increased its value from $25,000 to $30,000.
“Later this year, the Regional Investment Corporation will offer drought restocking and replanting loans of up to $200,000, with a two-year interest free period, to help farmers restock and replant when conditions improve after drought. On top of this, we’ll soon have the Future Drought Fund in place to help our rural communities build resilience with $100 million per year towards building resilience and greater preparedness for future droughts.”