National Farmers lobby for asset write-off
THE Federal Government must continue its $20,000 instant asset write-off for small business, which has been vital for helping farmers, the National Farmers’ Federation says.
The peak farming lobby this week launched a campaign urging the government to retain the write-off, which is due to expire June 30, in next month’s Budget.
The write-off was introduced in 2015, replacing the previous threshold of $1000 for depreciable assets.
The change let farmers invest in machinery and equipment they might not otherwise have been able to afford, allowing immediate deductions for things such as fencing, fodder storage upgrades, dams, tanks, irrigation channels and windmills.
The lobby wants the write-off to be extended, or a similar scheme to be put in place, such as allowing small businesses to deduct the first $5000 of any investment.
“One thing is certain, a return to the original $1000 write-off arrangement would reduce farm business investment and therefore scope for productivity gains,” NFF chief executive Tony Mahar said. “We are also seeking assurance that specific depreciation and capital write-off provisions for farmers will be retained.”
Mr Mahar said for agriculture to continue as “a powerhouse” of Australia’s economy, farmers needed “a tax and regulatory system that enables, not stifles growth”.
The NFF is calling for people to send an email it has prepared, available at the Australian Farmers website, to Treasurer Scott Morrison, urging him to save the write-off.
One thing is certain, a return to the original $1000 write-off arrangement would reduce farm business investment and therefore scope for productivity gains.
— Tony Mahar
LOBBY: NFF believes the write-off helps farmers invest in vital infrastructure and machinery.