Taxation Issues

Primary producers make an important contribution to Australia’s economic output, employment and export markets. A range of government support is available to the industry, including taxation concessions available to primary producers to assist them to better deal with fluctuating income.

Primary producers are eligible for a number of tax concessions that can be broadly classified as tax offsets, tax deductions and concessional treatments.

Tax offsets

Primary producers can use these mechanisms to reduce their assessable income, and therefore pay less tax. These include:

Tax deductions

These relate to expenses that directly facilitate earning income and reduces assessable income. These include:

  • Farm Management Deposits Scheme
  • depreciating assets
  • water facilities deductions
  • horticultural plants
  • carbon sink forests
  • electricity connections and telephone lines for small businesses
  • small business entity tax concessions
  • forestry managed investment scheme

Tax concessions

These relate to a variety of assistance measures for individuals such as deferrals of tax liability that can help to reduce an individual’s assessable income in the current financial year. These include:

  • fuel tax credits
  • insurance recoveries
  • profits from the forced disposal or death of livestock
  • double wool clips
  • luxury car tax
  • reduction in fringe benefits tax

For further information on these measures contact the Australian Taxation Office on 13 28 66.