From 7.30pm, 12 May, 2015 primary producers who meet the definition of a small business with an aggregated annual turnover of less than $2 million can claim an immediate deduction for capital expenditure on water facilities including dams, tanks, bores, irrigation channels, pumps, water towers and windmills; and fencing assets.

Farm management deposits (FMD) are an important tool to help primary producers deal with uneven income from one year to the next; a common scenario due to a myriad of variables in a primary production (PP) business.

The scheme allows deposits to be made with an authorised deposit-taking institution who offers special FMD accounts. A tax deduction can be claimed for the amount deposited, provided that the funds are not subsequently withdrawn within 12 months. If the FMD is withdrawn in a later year (after 12 months), the amount withdrawn is included in assessable income. In the case of a natural disaster, deposits can be withdrawn within 12 months, subject to meeting certain conditions, without the tax deduction being cancelled.

We generally recommend our property investor clients obtain a quantity surveyors report so as to maximise available depreciation and capital works allowance claims. We received an article recently from BMT Quantity Surveyors, highlighting the fact that property investors who obtain a suitably qualified quantity surveyors report claim significantly higher amounts in their tax returns. Some excerpts from their media release are as follows: