Asset write-off scheme a win for farmers

Depreciation on assets like machinery, vehicles, and buildings stands as one of the most impactful deductions for many rural businesses and farmers. By spreading out the cost of these assets over time, depreciation lowers your taxable income.  Businesses that meet the eligibility criteria can immediately deduct the business-related portion of an asset's cost in the year the asset is first used or installed for use. The instant asset write-off applies to multiple assets if the cost of each individual asset is below the relevant threshold.

The instant write-off has made buying both new and second hand equipment very attractive.  Farmers can claim an immediate deduction for multiple assets, new or second hand, as long as each asset costs less than $150,000. It is important to note that assets need to either be first used or installed ready for use between 12 March 2020 and 31 December 2020, in order to claim the tax back.

Many Emmetts customers have already taken advantage of the scheme and used the tax write-off to buy new or used machinery, plant and vehicles priced within the $150,000 spending threshold.

Some farmers have been able to separate the machinery components out to ensure each item falls within the $150K cap. There is no limit to the number of equipment items a business can buy and claim against their taxable income.

There are some exclusions and limits to the Scheme. For example, a passenger car is limited to $57,580, where as a truck or commercial van has a higher limit. It will be important to seek professional tax advice prior to proceeding. More information can be found on the Scheme from the ATO's website.

If you are interested in taking advantage of the extended asset write-off scheme, please contact Rob Emmett on, who would be happy to answer any questions you may have or provide a quick quote.