With June 30 2016 looming, many farmers will be reviewing their machinery, equipment and maintenance requirements, in light of their tax position.
This is always a good time to consider the timing of purchases, as there can be benefits in buying before the end of the financial year if it means lowering your tax burden and being able to make immediate claims on depreciable items.
Waratah National Sales Manager Ross Lourie says there’s a new consideration in 2016, and that’s fencing.
“Replacing and even maintaining fences doesn’t always make it onto the priority list for farmers, despite the benefits a strong and durable fence can make to productivity and profitability,” Mr Lourie said.
“However, accelerated depreciation measures introduced by the Coalition in May 2015 may change the equation for some.
“Primary producers who purchase fencing products in the 2016 financial year can claim taxable deductions on the full cost of these assets immediately, instead of being tracked over their effective life (currently up to 30 years).”
The initiative was brought in by the federal government to assist primary producers with cash flow and drought preparedness, and also to encourage investment in productivity enhancing assets.
Mr Lourie said the new tax breaks will help with cash flow and could bring forward fencing plans.
“No-one’s going to buy fencing material they don’t need, but getting a proportion of the price back almost immediately means it could be factored into other projects, so both can be done at once,” he said.
“We’ve certainly been the busiest we have been for many years, with our mills running 24-7 and putting on extra staff.
“Farmers also have the chance to take advantage of Waratah’s Cashback deal when purchasing certain products, maximising their return.”
To be eligible for cashback people must purchase Waratah’s posts and/or wire between May 16 and June 30 2016. For more info, visit: waratahfencing.com.au/Latest-Products-and-Offers/Waratah-Cashback-Promotion-2016.aspx