Federal budget: Tax break for farmers to build fences and dams @ABCRural

Federal budget: Tax break for farmers to build fences and dams @ABCRural



Farmers will be encouraged to build fences, silos and irrigation channels under generous tax breaks in the federal budget.
The budget also confirms increased drought aid, paves the way for big loans for Top End infrastructure projects, and revamps the incentives for doctors to practise in remote areas.
Farm businesses will share in most of the benefits of the budget's small business package, including tax cuts and immediate tax deductions for items costing less than $20,000.
But in addition, from July 2016, farmers will be able to claim an immediate, total deduction for any spending on fencing and water infrastructure.
They will also be able to claim depreciation on fodder storage over three years.
"I'm really proud of the initiative to give instant asset write-off on fencing," Treasurer Joe Hockey said.
"A lot of farmers pretend that it's just repair of fencing when they're putting up fencing.
"This is a big productivity supporter. This initiative will help with cell farming, which is far more productive and is actually better for the environment, and it will also help a lot with pest control
"A lot of farmers don't erect fences because it becomes expensive, but the more fencing we have, and the better utilisation of existing farmland through cell farming, you're going to see a better outcome."
Mr Hockey said the aim was to help farmers improve their productivity and environmental management of the land.
"Farmers are the most resilient of all Australians," Mr Hockey said.
"They have to deal with the varied conditions of a big land, fierce global trade and ever increasing competition."
The Federal Government has confirmed that the extension of its Drought Concessional Loans and Drought Recovery Concessional Loans schemes for another year, to June 2016, involves $250 million worth of new loan money. There had been concerns that the funding had simply been recycled from the previous year.

Irrigear Goulburn

Author & Editor

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