Assistance for Drought Affected Communities

20 August 2018

With 31 franchises across Australia, Sheds n Homes is proud to operate within the rural sphere – and we know how tough things can get in the bush. We've been actively supporting the Burrumbottock Hay Runners and will continue to support the farming communities which have long supported us.

Rain is the lifeblood of rural towns, and the effects of the drought run deep into these communities, which are often seen as being less resilient than the farming businesses which support them. Australia’s farmers are highly regarded as being some of the most efficient on earth – a title of necessity, but a proud one nonetheless.

Combined with funding at a council level, the latest drought relief package also includes the following as a more direct benefit to rural producers in need:

Primary producers can immediately deduct (rather than depreciate over three years) the cost of fodder storage assets, such as silos and hay sheds used to store grain and other animal feed storage, making it easier for farmers to invest in and stockpile fodder.

Farmers will be better placed to invest in fodder storage as part of the instant depreciation initiative. This measure will be available for fodder storage assets first used or installed ready for use from today and complements the $20,000 instant asset write-off already available for small businesses. Legislative changes will be made to give effect to this measure.

Click here to see the media release

 

 Farmers will be able to claim the cost of the shed used for fodder storage in the financial year that it was purchased and ready for use. Bringing forward the tax deduction may provide you with a reduction of income tax payments for the current and next financial year (due to lower instalments) and allow the cash flow to be applied to more important costs.

 

For example, if a shed costing $110,000 (incl GST) was purchased.  Your GST can be claimed in the current BAS.

Currently, the shed would be depreciated over 3 years.  The deduction is then $33,333 per year with a tax saving, assuming a 30% tax rate, of $10,000 for the next 3 years.

Under these new arrangements, the Farmer would be able to claim the full $100,000 as a tax deduction in the current year.  Assuming a 30% tax rate, this is a tax saving of $30,000. Making the cost of the shed $70,000.

Even if you did not have taxable income in the current year, you can carry this loss forward to offset future income.

 

This is general information only and should not be taken as constituting professional advice.  You should consider seeking independent legal, financial, taxation or other advice to check how the information relates to your unique circumstances.

 

To begin the conversation about your farm storage needs, click here to request a quote and you'll be contacted by your local franchise

 

 

 

Buyer Protection Guarantees

SIGN UP TO OUR NEWSLETTER

Join our mailing list to receive industry news, product information, recent projects and DIY tips. Be the first to hear about our promotions and special offers!

Copyright ©2018 Sheds n Homes | Privacy Policy | Terms & Conditions Website Designed & Developed by Stead Lane