The Federal Government has brought forward the start date for new farm tax breaks, effective immediately.
On budget night, the government announced that farmers would be able to deduct the full cost of water facilities and fencing in the year in which they were purchased, and depreciate the cost of fodder storage assets over three years.
However, in the budget papers, those tax breaks were not due to start til the 2016-17 year, meaning farmers wouldn’t see the benefits until their 2017 tax returns.
In a joint statement released on Wednesday, Mr Hockey and Mr Joyce announced that those changes would now be brought forward and made available immediately.
“Australian farmers can now claim a tax deduction on all capital expenditure on water facilities, fodder storage assets and fencing incurred since the 2015 Budget was handed down at 7:30pm on 12 May,” the statement said.