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WHAT PRIMARY PRODUCERS NEED TO CONSIDER WHEN TAX PLANNING FOR EOFY
With the end of the financial year looming, it’s time to think about your tax planning options before 30 June 2023 hits.
We’ve curated a list of top things to focus on when organising your tax affairs for the 2023 year-end, applicable to businesses, primary producers, trusts and individuals.
PRIMARY PRODUCERS
Primary producers play a vital role in Australia's agricultural sector, and we recognise the unique challenges and opportunities they face when it comes to managing their tax obligations.
This webpage is specifically tailored to assist primary producers in optimising their tax position, maximising deductions, and ensuring compliance with the latest tax regulations. Whether you're involved in farming, livestock production, horticulture, or any other primary production activity, we are here to provide you with valuable insights and strategies to make the most of your tax planning efforts.
Read our top 3 tax time tips for primary producers:
Profit from forced disposal of livestock
With many areas around Australia being affected by adverse weather conditions, some farmers have been forced to destock pastures. Flood and drought affected areas may be eligible for tax relief in this situation.
This includes spreading the profit on disposal of livestock over a five-year period or electing to defer the profit to reduce the replacement cost of livestock. Any profit not used in the disposal year or any of the next five years would then form part of assessable income in the fifth income year.
Primary production income averaging
Primary production averaging can be used to average the income of primary producers over a 5-year period.
When a primary producer’s average income is less than their taxable income, they are entitled to an averaging tax offset. If their average income is more than their taxable income will be subject to pay complementary tax. . .
Careful planning and review within a farming group could result in significant tax savings in minimising any complementary tax.
Farming management deposits (FMD)
From 1 July 2018, the maximum amount of all deposits that can be held by an individual is $800,000, with a minimum amount remaining at $1,000.
If you are experiencing financial hardship and wish to access your FMD early, please contact our office to discuss what options may be available.
GET IN TOUCH
From exploring tax concessions and deductions available to primary producers to understanding the nuances of income averaging, we cover a wide range of topics that are essential to your tax planning success. Our goal is to help you minimize your tax burden, maximize your cash flow, and achieve long-term financial stability.
Get in touch today >>
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