Taxation measures - Australian Taxation Office

​​​​​​​​​​​Immediate deductions for fodder storage assets

Primary producers may be able 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, making it easier for them to invest in and stockpile fodder. Primary producers who store fodder for sale may also be entitled to this deduction.

This measure is available for fodder storage assets first used or installed ready for use on or after 19 August 2018.

For more information, refer to the government’s media release.

​​​​​​Extension to 30 June 2020 and Increase of the Instant Asset Write-off

As announced by the Prime Minister, the Hon. Scott Morrison MP, on 29 January 2019, the Australian Government is committed to extending the $20,000 instant asset write-off to 30 June 2020. In addition, the government also committed to increasing the level of the instant asset write-off to $25,000 for purchases made on or after 29 January 2019. Please refer to the Prime Minister’s media release for more information.

This measure will allow small businesses with a turnover of less than $10 million, including those in primary production, to continue claiming a full deduction for business assets in the year they are purchased and/or installed, helping businesses to improve their planning and cash flows.

The Treasurer, the Hon. Josh Frydenberg MP, introduced amending legislation in Parliament on 13 February 2019 to enact these changes.

For more information, refer to the Treasurer’s media release or the Australian Taxation Office’s website.

​​​​​​Income tax averaging

Primary producers can, from 1 July 2017, re-commence income averaging 10 years after opting out. Prior to this amendment, a primary producer who had opted out of income averaging could not return to the arrangement.

Primary producers who opted out of income averaging for the 2006–07, or an earlier financial year, will be opted back in to income averaging for the first financial year after 2016–17 in which their taxable primary production income is greater than that for the previous financial year.

The legislative amendment enacting this change, the Tax and Superannuation Laws Amendment (2016 Measures No. 2) Act 2017 received Royal Assent on 28 February 2017. More information is available at Tax averaging for primary producers (Australian Taxation Office website).

Primary producers affected by drought and natural disasters

The Australian Taxation Office can help people affected by drought and other natural disasters with:

  • more time to pay
  • waiving penalties or interest charged at a time you were affected by drought
  • payment plans with interest free periods
  • adjusting pay as you go (PAYG) instalments to better suit your circumstances
  • tax incentives for primary producers.

More information is available at the Australian Taxation Office website, on:

In special circumstances, the Commissioner for Taxation may release individuals from payment of income tax, fringe benefits taxes and some other taxes where it is shown that payment would cause serious hardship.

The Tax Office will look at circumstances on a case–by–case basis.

There are a number of taxation measures and concessions available to drought–affected primary producers. These include:

Taxation issues

​​​There are also a number of other tax concessions available to primary producers, regardless of their location or if they are in hardship, that can be broadly classified as tax offsets, tax deductions and concessional treatments.

Tax offsets

Primary producers, given their highly variable income streams and remote location, can use these mechanisms to lessen their tax burden. These include:

Tax deductions

These relate to expenses that directly facilitate earning income and reduces assessable income. These include:

Tax concessions

These relate to a variety of assistance measures for individuals such as deferrals of tax liability that can help to reduce an individual’s assessable income in the current financial year. These include:

For further information on these measures contact the Australian Taxation Office on 13 28 66.

More information

  • For drought assistance, contact the Australian Taxation Office Drought hotline on 1800 806 218 or visit Drought help on the Australian Taxation Office website for further information.
  • For small business and primary producer assistance, phone the Australian Taxation Office business enquiries line on 13 28 66 or visit Primary producers on the Australian Taxation Office website.​​​​​​​
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