There are several government tax incentives, grants and assistance funds available for farm shed projects including:
Temporary Full Expensing
Full Write-Off For Fodder Storage Assets
Woolworths Dairy Innovation Fund
Woolworths Organic Growth Fund
NSW Drought Assistance Fund
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.
From 6th October 2020 until 30th June 2023, 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 2023.
- 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 2023.
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.
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 first round of funding open on 1st December 2020 and close on 16th February 2021.
Learn about the eligibility criteria and the next rounds of funding here.
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.
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 e.g., reduced permit costs.
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 May 2021.