Farmers, tradies hit by tax changes

Changes to the tax Instant Asset Write-Off in the May 9 Budget meant farmers who had ordered vehicles or equipment only had until June 30 to take delivery before the threshold dropped to just $20,000.

As part of the 2023�24 Budget, the Australian Government announced it will temporarily increase the instant asset write-off threshold to $20,000, from 1 July 2023 until 30 June 2024.

With many businesses still facing lengthy supply chain delivery delays, NSW Farmers joined other industry groups in calling for a �common sense extension� to the Instant Asset Write-Off.

But this week Agriculture Minister Murray Watt wrote to NSW Farmers President Xavier Martin to advise no extension would be granted. Mr Martin said the tin-eared decision would see farmers, tradies and small business owners thousands of dollars out of pocket.

�People have ordered expensive equipment and placed deposits or paid outright under the belief they could use the Instant Asset Write-Off, but now they�ll be caught short through no fault of their own,� Mr Martin said.

�The right thing to do would be a grace period where anyone who paid for a tractor or piece of equipment before the Budget was handed down, but whose dealer can�t get it to them by June 30, will still be able to claim the write-off.

�As it stands, this decision will leave them thousands of dollars out of pocket at the worst possible time for business with soaring inflation and costs.�

Under the changes anyone who has not taken delivery of an order by June 30 � regardless of when the order was placed or paid for � would have to depreciate the asset over many years.

Some farmers had ordered expensive equipment such as tractors more than a year ago, Mr Martin said, and were still waiting to take delivery.

�This decision will leave farmers out of pocket because the government won�t do the right thing,� Mr Martin said.

�We�ve got this absurd situation where someone has paid for a tractor, but because they can�t get it by June 30 because of delays, the farmer will be left financially much worse off.

�It�s not fair and it will place a lot more unnecessary pressure on a lot of businesses.�