Being a proud Australian own family business, providing quality steel kit garages, carports, industrial sheds, farm sheds and kit homes, we couldn’t be happier with the government’s announcement to help Aussie farmers and allow a tax incentive on storage assets.
As the backbone of the nation, providing the produce all Australians rely on, the government have allowed primary producers to immediately deduct (rather than depreciate over three years) the cost of fodder storage assets, such as silos and hay sheds used to store grain and other animal feed storage, making it easier for farmers and their families to invest in and stockpile fodder.
For example, if a shed costing $110,000 (incl GST) was purchased. Your GST can be claimed in the current BAS.
Currently, the shed would be depreciated over 3 years. The deduction is then $33,333 per year with a tax saving, assuming a 30% tax rate, of $10,000 for the next 3 years.
Under these new arrangements, the Farmer would be able to claim the full $100,000 as a tax deduction in the current year. Assuming a 30% tax rate, this is a tax saving of $30,000. Making the cost of the shed $70,000.
Even if you did not have taxable income in the current year, you can carry this loss forward to offset future income.
While this incentive won't bring on the rain, we can only hope that this government assistance will help those farms in need and bring some positivity to the community, and as one of the major suppliers of ShedSafe quality sheds we'll continue to support those farmers in need and provide storage solutions that accommodate farmers demands.
For more information on the tax incentive please refer to the Department of Agriculture and Water Resources announcement published on Sunday the 19th of August 2018.