Federal Member for Hume Angus Taylor has welcomed news farmers can claim an immediate tax deduction on all capital expenditure on water facilities, fodder storage and fencing.

“We want every farmer in Australia out there investing, now is the time with the lower dollar and higher margins. Now is the time to get these investments in place and we will start to see the flow-on effects to the rest of the Australian economy,” Angus Taylor said.

Mr Taylor said he had lobbied hard, as had a number of other rural MPs, for instant asset write offs for rural producers. He said consistent pressure had convinced the government to bring forward the start date from 1 July 2016 to Budget Night, 12 May 2015.

“One sector that we know has phenomenal opportunity in the coming years is agriculture. To shore up the strength of our agricultural sector with the robustness to face drought and volatility, we’re offering immediate tax deductions for new investments in water facilities, and a three year depreciation allowance on all capital expenditure on fodder storage assets.

“This is absolutely fantastic news, showing the government has again listened to rural and regional Australia.”

Mr Taylor said Hume small businesses got a boost on Budget night being able to immediately claim accelerated depreciation on business assets costing up to $20,000. He said farms with turnover of less than $2 million qualified as a small business and were therefore also eligible to immediately write-off all asset purchases up to $20,000.

“There will be a positive impact on the activity of the businesses themselves and on how much they stimulate the businesses around them. That second-order effect of a small business buying from another business and in turn that business buying from someone else will have a significant impact in regional Australia.”

Caption: “We want every farmer in Australia out there investing:” Angus Taylor 

Angus speaking on this in parliament today Thurs 28 May: https://www.youtube.com/watch?v=a3-Mi1E4mRU