Farm Shed Tax Write-Off In 2024

  • 5 Minute Read

A short summary of farm shed tax write-off options in 2024. 

What farm shed tax write-off is available in 2024? 

Can I still instantly write-off the cost of my shed? 

These are both increasingly common questions as June 30 comes closer and farmers are looking at the options for tax deductions, particularly now that the Temporary Full Expensing initiative has ended.  

In this short article, we answer these questions and explain some of the points you need to know about eligibility.  

What Farm Shed Tax Write-Offs Are Available? 

The Temporary Full Expensing initiative has ended and the instant asset write-off has reverted to a $20,000 limit, however, the fodder storage asset write-off is still available. 

Can I Still Instantly Write-Off The Cost Of My Shed? 

You can still write-off your shed in 2024, provided that you and your shed meet the eligibility requirements of the fodder storage asset write-off.  

Arguably the two most important requirements are: 

1. You must be a primary producer 

2. The shed must primarily and principally be used to store fodder for your livestock i.e. a hay shed or a grain shed 

You can learn more about these requirements and others on the ATO website, here.

How Does The Fodder Storage Asset Write-Off Work? 

This incentive works by allowing eligible primary producers to deduct the full cost of eligible assets from their taxable income. 

By reducing their taxable income the primary producer is able to reduce their tax payable. 
 
For example:
  • Kevin builds a hay shed to store hay to feed his sheep. The hay shed costs $80,000.
  • Kevin’s taxable income is $250,000. Using his hay shed as a tax deduction, Kevin can reduce his taxable income to $170,000.
  • As a result, Kevin pays tax on an income of $170,000 rather than $250,000. 

Check out our article – Is The Hay Shed Tax Write-Off Still Available? – for more information.

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Further Reading & Relevant Resources 

For more in depth articles, brochures and storage calculators, browse our Learning Hub. 

Or to discuss your shed project with a building consultant, call us on 1800 687 888.  

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