AUSVEG welcomes expedited tax concessions for veggie and potato growers

Today’s decision to allow
Australian farmers to claim tax deductions on capital expenditure incurred
since the 2015 Budget on water facilities, fodder storage assets and fencing
has been welcomed by AUSVEG.
 
Previously, growers were facing having to wait until July 1 2016 to claim the
tax deductions. However, a change announced by the Government today will allow
them to make these claims, backdated to the night the Federal Budget was handed
down.
 
“This is welcome news for Australian vegetable and potato growers, who are now
eligible to claim deductions more than a year earlier than was originally
anticipated,” said AUSVEG Economist Steve Razdan.
 
“Under the budget measures, growers can fully deduct the cost of fencing and
water facilities such as dams, tanks, pumps, water towers and windmills in the
year they are purchased.”
 
“Furthermore, growers can deduct the cost of fodder storage assets including
silos and tanks used to store grain and other animal feed over three years.”
 
AUSVEG is the leading horticultural body representing Australia’s 9,000
vegetable and potato growers.
 
Additionally, farmers running small businesses with turnovers of less than $2
million are eligible to claim expenses on business asset investments worth up
to $20,000, under another measure announced in the Federal Budget.
 
“This is especially welcome news for smaller growers who do not benefit from
economies of scale, and who may have held off investing in a machine or tool
because they couldn’t afford a $20,000 investment,” said Mr Razdan.
 
“Our growers are already facing tough business conditions, with increasing
production costs, such as freight, energy and labour, placing increased
pressure on already tight bottom lines, so any measures that assist them are
welcome.”
 
“It is commendable that the Australian Government has listened to industry and
the growing community, and brought forward these measures, which could help
relieve some of the financial pressures facing farming businesses.”