2017 Tax Planning Checklist: Primary Producers

(In addition to small business entities and entities not defined as small business).

Deductions

Non-Commercial Losses – for a business to be commercial, under the “non-commercial losses tests”, the business needs to meet certain prescribed tests. If the tests are not met, any losses arising from the activities must be carried forward and offset in a later year against future income from the same type of source. If you have non-commercial losses, please contact your professional accountant for advice on the treatment of the losses in 2016/2017

Accelerated depreciation applies to allow an immediate deduction for the full amount in the year incurred for the following:
  • Water Facilities
  • Fencing Assets
  • Landcare Operations
Horticultural Plants with an effective life of less than 3 years
Expenditure on new fodder storage asses may be claimed in equal instalments over 3 years.

Income Issues

Deferring Livestock and Produce Sales – farmers can defer livestock and produce sales until after 30 June 2017.