Budget 2015: Farmers
Immediate deductions for fencing and water facilities
Date of effect: For income years on or after 1 July 2016
From 1 July 2016, primary producers will be able to immediately deduct capital expenditure on fencing and water facilities such as dams, tanks, bores, irrigation channels, pumps, water towers and windmills.
Plus all capital expenditure on fodder storage assets such as silos and tanks used to store grain and other animal feed will be deductible over 3 years.
The changes will not be limited to small business entities unlike the other proposed changes to depreciation rates.
Currently, the effective life for fences is up to 30 years, water facilities is 3 years and fodder storage assets is up to 50 years.
SOURCE: Knowledge Shop
To discuss how this may impact your circumstances please contact PPT on (03) 5331 3711.
DISCLAIMER: The material and contents provided in this publication are informative in nature only. It is not intended to be advice and you should not act specifically on the basis of this information alone. If expert assistance is required, professional advice should be obtained.
