National Farmer’s Federation President Fiona Simson said the farming sector is calling on Treasurer Scott Morrison to preserve instant capital write-off provisions for small business in the 2017-2018 Budget.
“Currently, all small businesses, including farms, can immediately depreciate capital investments of $20,000 or less. In addition, farmers can immediately depreciate expenses for Landcare activities, fencing, water and fodder storage upgrades,” Simson said.
“Combined, these measures have enabled farmers to build and renew their asset base and grow their productivity,” she said.
“This couldn't come at a better time, as many parts of the country recover from polonged drought, while other areas are experiencing devastating flooding.”
The NFF President said farmers are able to invest like this, everyone benefits. Starting with small farming communities which see a surge in local commerce, and ending with all Australians who gain from growth in our second largest export industry.
GrainGrowers general manager of policy and innovation David McKeon said the measure targeted small scale investment by the government which had already achieved big returns in terms of increased farmer confidence and renewed investment in their businesses, with positive flow-on effects for regional small businesses and employment.
“This injection has been widely applauded in the grains industry for being a practical and well defined measure which has stimulated growth in farm infrastructure at just the right time – when Australia is celebrating a record grains harvest in volume but faced with low grain prices,” Mr McKeon said.
GrainGrowers’ National Policy Group (NPG) meet in Sydney 4-6 April to discuss the issue.
Among NPG Members who commented favourably was Mark Hoskinson, a grain grower from Kikoira in central New South Wales.
Mr Hoskinson said that the $20,000 instant asset write-off enabled farmers in his district to undertake much needed repairs to their farms which would not have otherwise been possible because of the economic downturn caused by long years of drought.
He said investments in such items as much needed farm machinery and silos had enabled growers to look to and prepare for the future sooner than would have been the case otherwise.
The stimulus has enabled growers to achieve renewed efficiency and productivity in their operations at the right time - to take maximum advantage of the record grains harvest.
Mark Hoskinson, a grain grower from Kikoira and GrainGrowers' National Policy Group member
“It also has had a flow on positive effect on local businesses which have been able to hire more workers as a result of an increase in sales.
“HE Silos at Forbes, for example, was able to sell many more silos for on-farm field storage as a result of the asset write-off measure and the record harvest. The company is now a finalist in this year’s Excellence in Business Awards in May, organised by the NSW Business Chamber, following the company’s significant growth, which has been admirable, coming as it does on the back of the drought.”
