Na­tional Farm­ers lobby for as­set write-off

Central and North Burnett Times - - RURAL WEEKLY - Natalie Kot­sios news@ru­ral­weekly.com

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

PHOTO: THINKSTOCK

LOBBY: NFF be­lieves the write-off helps farm­ers in­vest in vi­tal in­fra­struc­ture and ma­chin­ery.

Newspapers in English

Newspapers from Australia

© PressReader. All rights reserved.