Legislative changes for primary producers and farmers
In a similar vein to our business update, and considering the ongoing drought conditions, here are a few legislative changes relevant to primary producers and farmers:
- Deductibility for primary producers. Primary producers can deduct capital expenditure on fodder storage assets (e.g. silos, liquid feed supplement storage tanks, hay sheds, grain storage sheds, etc.) used to store grain and other animal feed (e.g. hay, silage, etc.) in the financial year in which the expenditure is incurred (rather than depreciate over three financial years). This applies to fodder storage assets first used or installed ready for use on or after 19 August 2018.
Treasury Laws Amendment (Supporting Australian Farmers) Act 2018. Royal assent on 3 October 2018.
- Farm household allowance.
- Farm Household Allowance is usually paid at the same rate as Newstart Allowance, however a more generous, two-stage assets limit applies. The farm assets limit will temporarily increase from $2.6375 million to $5 million for the period 1 September 2018 to 30 June 2019. And, a new payment supplement of $7,200 for single farmers and $12,000 for farming couples, will be paid in September 2018 and again in March 2018, to qualifying Farm Household Allowance recipients.
- The extension of the Farm Household Allowance program from three cumulative years to four cumulative years for each recipient.
Farm Household Support Amendment (Temporary Measures) Act 2018 and Farm Household Support Amendment Act 2018. Royal assent on 24 August 2018 and 29 June 2018, respectively.