Taxation measures - Australian Taxation Office

​A Better Tax System for Farmers

​​​​​​Accelerated Depreciation

In the 2015–16 Budget, the Australian Government announced more favourable accelerated depreciation for water and fodder infrastructure and fencing for farmers, effective from 7.30pm on 12​ May 2015​. This allows farmers to claim deductions over shorter timeframes, rather than the longer periods required under the general tax deduction rules.

Income Tax Averaging

The Australian Government has announced that farmers, from 1 July 2016, will be able to resume income tax averaging 10 financial years after they have elected to exit the scheme, in recognition that business circumstances change over time. Farmers who opted out of income averaging before 2006 may be able to take advantage of this change from 1 July 2016. This initiative is part of the Australian Government's Agricultural Competitiveness White Paper, the government's plan for stronger farmers and a stronger economy.

Farmers affected by drought and natural disasters

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

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 can use these mechanisms to reduce their assessable income, and therefore pay less tax. 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

  • Phone the Australian Taxation Office on 13 28 66 or
  • Visit Primary Producers on the Australian Taxation Office website.​