How to benefit from the government tax write-off

Published 11.10.26 | Written by Jonny Hornsey

Benefit from the government tax write-off before it's too late

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ABC Sheds structural steel shed

2020 was a tough year so far for many farmers across Australia. Bushfires ravaged many parts of the country at the start of the year and now with the COVID-19 pandemic upon us, some farmers are struggling to get ahead.

The Australian government has recognised these struggles and on the 12th of March 2020 a $17.6 billion stimulus package was announced with the aim of keeping Australians in jobs, businesses in business, and households supported. A big part of this stimulus package was the announcement that the instant asset write-off was being increased – great news for farmers!

However, wind on to 2026 and read on to find out more about what’s on offer now and see how you can make the most of this.

The instant asset write-off increase

The instant asset write-off threshold was increased from $30,000 to $150,000. Access to this has also been expanded to include businesses with an aggregated annual turnover of less than $500 million (up from $50 million). The new instant asset write-off threshold has been extended from the 30th of June to the 31st of December 2020, for new or second‑hand assets first used or installed ready for use in this timeframe.

However from the 1st of July 2023 the threshold was changed back to $20,000 per asset.

Eligibility for the instant asset write-off depends on a number of different factors which include:

Your aggregated turnover.
The date you purchased the asset and if it was either first used, or installed ready to use.
The cost of each asset is less than the threshold.

Businesses with a turnover of $10 million or more are not eligible to use the instant asset write-off.

How can farmers benefit from the tax write-off?

Farming businesses rely on machinery and equipment for day-to-day operations so the increase to the instant asset write-off is welcome news! Under the instant asset write-off eligible businesses can:

Immediately write-off the cost of each asset, as long as the cost is less than the threshold.
Claim a tax deduction for the business portion of the asset cost, in the year the asset is first used or installed ready for use.

This means that eligible farming businesses can still spend what they need to on new machinery and equipment, without having to worry about cashflow.

What happens if my asset is over $20,000? Give us a call to find out how we can help you take advantage of this write off and save tax!

As always, its good to get expert advice from your accountant, some of the questions you could ask:

Which rules apply to this building and its intended use?
Does the project qualify as a fodder storage asset, or should another tax treatment be considered?
How does any private or non-farming use affect the deduction?
Which project costs can be claimed, and in which income year?
What records will you need to support the claim?
-What thresholds and timing requirements apply for the financial year in which you plan to proceed?

The Standwell range of structural steel sheds are made to stand the test of time and with a 25 year “you’re covered” guarantee, you’ll know that your money is well spent. If you’re looking to use the instant asset write-off for something like a new shed for your farm then we would encourage you to request a quote today, so that you can take advantage of the write off. If you'd like more information on how to make the instant asset write-off work for you, get in touch and we'd be happy to help.

Interested in learning more about our farm sheds? View the Standwell range here.