Financial 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're a small business, you'll 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.

The government has extended the $20,000 instant asset write-off for eligible small businesses until 30 June 2026. This has been done to improve cash flow and reduce compliance costs for small businesses. Here's 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 2026
• The $20,000 threshold applies 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 use the small business simplified depreciation pool. They'll 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.

Claim an immediate tax deduction for fodder storage

If you're 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 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 to primary producers 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, then 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.

For more than 30 years, the RAA has helped farm businesses and rural communities in NSW become more resilient, self-reliant and sustainable. The RAA works within the NSW Department of Primary Industries and Regional Development, which focuses on protecting, supporting and developing the state's primary industries, mining sector and regions.

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 & Recreation Clubs: up to $15,000
• Non-profit Organisations: up to $25,000.

Learn more about natural disaster relief loans here.

Drought Ready and Resilient Fund

The NSW Government is offering $250,000 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.

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.