Coronavirus stimulus package a boost for farmers

In a March announcement, the federal government introduced another round of taxation depreciation incentives as part of its major $17.6 billion fiscal stimulus package. As industries around the country have slowed down due to the affects of COVID-19, Rural & Agriculture business has carried on, keeping our communities thriving. 

The package announced directs $1 billion to a 'regional & community fund' to support the agriculture industry in dealing with the flow on effects & strain experienced by COVID-19. 

So, what does this mean for those working in the agriculture sector?

The previous instant depreciation deduction incentive that allowed small & mid-sized businesses to spend up to $30,000 on equipment has been raised to a $150,000 spending limit, until June 30 2020. 

Secondary to this, plant investments worth $150,000 and more now qualify for a one-off 50% depreciation claim against a regional business' (or farmer's) taxable income until July 2021.

In another push for the industry, the package offers a tax-free wage payment booster of $2,000 to $25,000 for eligible rural businesses who are employing an extra worker, until June 30. Business owners can also take advantage of a 50% wage subsidy for new apprentices or trainees.

While many of our producer customers may be more inclined to focus on managing their debt and hesitant to invest in new equipment or additional employees, businesses genuinely considering plant or equipment upgrades should take advantage of the benefits offered by the new package by June 30. 

Head into your local Rural store by June 30 to discuss the best solution for your unique agribusiness needs.