Agriculture & Farming
Rural and agricultural accounting specialists. Primary producer concessions, income averaging, and farm management deposits.
Agriculture & Farming Accounting
Specialist accounting for primary producers, based on ATO primary producer concessions and income averaging.
Primary Producer Tax Concessions
The ATO provides specific tax concessions for primary producers:
- Income Averaging: Even out income and tax payable over a maximum of 5 years to account for good and bad years (drought, flood, market fluctuations)
- Farm Management Deposits (FMDs): Deposit pre-tax income in good years and withdraw in bad years ??? deposits are tax-deductible when made
- Averaging Tax Offset: When your average income is less than your current year income, you receive a tax offset
- Water Facilities: Deductions for capital expenditure on water infrastructure
- Fodder Storage: Immediate deduction for fodder storage assets
- Livestock: Special rules for valuing livestock and claiming drought-related forced sales
Understanding Income Averaging
Income averaging works by:
- Calculating your basic taxable income (excluding net capital gains and certain other amounts)
- Comparing it to your average taxable income over the previous years
- Providing a tax offset if current income is above average, or requiring extra tax if below average
- Non-primary production income under $5,000 is included in full; $5,000-$10,000 is partially included; $10,000+ is excluded
Our Agricultural Services
- Farm Business Analysis: Enterprise budgeting, cost-of-production analysis, and profitability by enterprise
- Asset Management: Depreciation schedules for machinery, vehicles, buildings, and infrastructure
- GST and BAS: Primary producer GST obligations, including livestock, grain, and produce sales
- Succession Planning: Farm transfer, family succession, and retirement planning
- Entity Structuring: Family trusts, partnerships, and company structures for asset protection
- Climate Risk: Drought, flood, and market risk financial planning
- Agri-Grants: Grant and subsidy application support and compliance
Farm Record Keeping
Primary producers must keep records of:
- All income ??? livestock sales, crop sales, subsidies, and other farm income
- All expenses ??? feed, seed, fertiliser, fuel, repairs, and wages
- Asset purchases and disposals
- Livestock movements and valuations
- FMD deposits and withdrawals