Machinery shed with trusses

What Tax Incentives Or Government Grants Are Available For My Farm Shed Project?

There are several government tax incentives, grants and assistance funds available for farm shed projects. If you are building a new shed, it may be worth finding out if your project is eligible for any of these offers. 

Learn more about each one below.

  • Temporary Full Expensing

  • Full Write-Off For Fodder Storage Assets

  • Woolworths Dairy Innovation Fund

  • Woolworths Organic Growth Fund

  • Coles Nuture Fund

  • NSW Drought Assistance Fund

Machinery shed with trusses

Temporary Full Expensing

From 6th October 2020 until 30th June 2022, businesses with a turnover of up to $5 billion will be able to deduct the full cost of eligible depreciable assets in the year they are first used and installed.

  • Assets can be of any value.
  • There is no limit to the number of eligible assets that can be written off.
  • The assets purchased must be installed and ready to use by 30th June 2022.
  • Legislation will need to be passed for the incentive, but it is expected to have the support of the Opposition party.
  • The cost of improvements made to existing eligible assets can also be fully written-off from 6th October 2020 to 30th June 2022.

Full Instant Write-Off Of Fodder Storage Assets

Introduced as part of the government’s drought assistance program, a primary producer can now instantly write-off the full amount of a fodder storage asset e.g., a hay storage shed.

We recommend you read our article which discusses this write-off incentive in more detail.

Woolworths Dairy Innovation Fund

This fund aims to deliver $5 million in grants up to $100,000 each over three years to Australian dairy farmers in the Woolworths supply chain.

Applications for the second round of funding for the Woolworths Dairy Innovation Fund open on 29th November 2021 and close on 20th February 2022

Learn about the eligibility criteria and the next rounds of funding here.

Dairy Sheds

 Woolworths Organic Growth Fund

In addition to the Dairy Innovation Fund, Woolworths also have interest-free loans and financial grants available to eligible Australian farmers for organic farming projects.

Funding from this fund is currently only available for organic fruit and vegetable farming projects and can be used for research and development or capital expenditure.

Learn about the other requirements and find out how to apply here.

 

Coles Nuture Fund

Coles launched the $50 million Nurture Fund in April 2015 to help Australian food and liquor producers innovate and grow.

Round 10 is now open and will close on Friday, 25 February 2022.

Access the guidelines and application form, here

 

NSW Drought Assistance Fund

Available via the NSW government, the Drought Assistance Fund (DAF) provides interest-free loans for primary producers to improve the sustainability of their farm business.

This loan is available to fund:

  • the transport of stock, fodder and water
  • genetic banking of breeding herds
  • installation of on-farm fodder and water infrastructure
  • activities that promote profitability and resilience as a result of the on-farm investment

Information on the application process can be found here.

 

Local Grants & Concessions

If you are in a drought or fire affected area check with your state government or local council to find out if there are any grants or concession available locally for example, reduced permit costs.

 

 

**Disclaimer**

Please note that this advice is general only. Speak to a qualified accountant or the relevant organisation to find out how these would apply to your business.

Article Updated February 2022

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