Financial assistance

Government assistance

The government has a number of different packages in place to help farmers and businesses during these uncertain times.

Instant asset tax write-off

Eligible businesses can claim an immediate deduction for the business portion of the cost of an asset, in the year the asset is first used, or installed ready for use. This is a fantastic incentive for businesses that may have been doing it tough, to upgrade or purchase new farm machinery and equipment.

The instant asset write-off can be used for:

• Multiple assets, if the cost of each individual asset is less than the relevant threshold.
• New and second-hand assets.

If you are a small business, you will need to apply the simplified depreciation rules in order to claim the instant asset write-off. It cannot be used for assets that are excluded from the rules.

As part of the 2024-25 budget, the government has announced that it will extend the $20,000 instant asset write-off by a further 12 months until June 2025. This has been done to improve cash flow and reduce compliance costs for small businesses. Though these measures are not yet law, here is what they mean:

• Small businesses with an aggregated turnover of less than $10 million can immediately deduct the full cost of eligible assets costing less than $20,000 so long as they are used or installed between 1 July 2023 and 30 June 2025.
• The $20,000 threshold will apply to individual assets, so small businesses can instantly write off multiple assets.
• Assets valued at $20,000 or more cannot be immediately deducted, however, they can continue to be placed into the small business simplified depreciation pool. They will be depreciated at 15% in the first income year and 30% each income year after that.
  

For more information on the instant asset write-off including updates from the Australian Government, click here.

Want to use the instant asset write-off for a new shed? Just get in touch with the team at ABC Sheds and enquire here.

Claim an immediate tax deduction for fodder storage

If you are a primary producer, you may be entitled to claim an immediate tax deduction for capital expenses incurred on fodder storage assets. 

Examples of fodder storage assets include:

• Silos
• Liquid feed supplement storage tanks
• Bins for storing dried grain
• Hay sheds
• Grain storage sheds
• Above-ground bunkers.

Note that you must be a primary producer in order to claim this deduction and your deduction is limited to the capital expenses you incur for construction, manufacture, installation or acquisition. How you can claim for fodder storage will depend on when the expense incurred but most notably:

• If the expense was incurred on or after 19 August 2018, you can immediately deduct the cost in the income year you incurred it.

You can learn more about claiming an immediate deduction for fodder storage like a hay shed here.

Government-supported tax advantage

On May 12th 2015, Federal Treasurer Joe Hockey announced $70 million for farmers to encourage drought preparedness. The Government will provide an immediate tax deduction for water facilities and allow farmers to depreciate over three years capital expenditure on fodder storage assets. This was originally commencing on July 1 2016.

At the National Press Club in Canberra on May 27, Hon Barnaby Joyce, Minister for Agriculture, and the Hon Bruce Billson, Minister for Small Business confirmed the program would now be in effect from May 12 2015.

What does this mean for you?

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.

NSW GOVERNMENT Rural Assistance Authority (RAA)

For more than 30 years, the RAA has helped farm businesses and rural communities become more resilient, self-reliant and sustainable. The RAA works within the NSW Department of Primary Industries to provide funding and financial assistance to farmers.

Natural Disaster Relief Loans

Primary producers, small business operators, sporting and recreation clubs and associations and non-profit organisations in disaster declared local government areas (LGAs) may apply for a concessional loan to support rapid recovery.

• Primary Producers - up to $130,000
• Small Business - up to $130,000
• Sporting & Recreaction Clubs - Up to $10,000
• Non-profit Organisations - up to $25,000

Find out more and apply here.

Drought Ready and Resilient Fund

The NSW Government is offering $200,000 low interest loans to primary producers to implement systems and management practices that enhance the sustainability of their farm business.  The loan can be used to fund:

• the purchase and transportation of fodder and water
• livestock feeding equipment
• veterinary and animal welfare professional services
• genetic banking
• fencing and containment pens
• shade structures
• planting of trees
• farm income diversification projects
• pest and weed control
• solar power conversion
• soil conservation and earthworks
• training and development
• infrastructure repairs and maintenance
• the purchase and installation of new on-farm infrastructure.

The Drought Ready and Resilient Fund loan is available to eligible sole traders, partnerships, trusts or private companies who operate in the primary production sector in NSW. Learn more about this fund here.

Emergency Drought Transport Subsidy

Natural Disaster Transport Subsidy is available to eligible primary producers for the transport of fodder and/or water to a property, stock to/from agistment, stock to sale or slaughter, or bee or oyster movements following a declared natural disaster.

An eligible primary producer or primary production enterprise can claim a maximum subsidy of $15,000 (GST-exclusive) in one financial year

Find out more about this subsidy and see if you're eligible here.

bank finance

Did you know that you could get finance from a bank for your shed? While you would still need to pay for anything that's permanent i.e. concrete slabs and piers, you may be eligible for a chattel mortgage for something classed as a demountable building like a shed.

For advice on this type of finance for a shed, it's best to talk to your bank to confirm your eligibility.