Immediate write-offs up to $150,000 sets the mood for a spending spree not seen since the global financial crisis (GFC) downturn back in 2009 from the Rudd goverment’s $42 billion stimulus package
The instant Asset write offs and Accelerated depreciation deductions now on offer are far more generous than the previous GFC tax breaks in 2009 that saw businesses purchase equipment worth $75.2 billion.
This current round of deductions will end on 30 June 2020 so expect to see farmers that are finally facing a season of solid prospects, backed by recent rain, tap on your door.
To cater for the majority of purchases, the instant asset write-off for farm businesses sees the threshold increased from $30K to $150K for each asset.
However, it leaves it open for multiple assets to be purchased, so it allows for retailers to split up any items if appropriate.
The good thing about the purchases this time around, it applies to either new or second-hand assets.
As long as the assets are first used or installed ready for use by 30 June 2020.
This round of instant asset write offs also opens the benefit up to many more businesses than in 2009.
Eligible businesses are those with aggregated annual turnover of less than $500m, up from just $50m previously.
For farmers buying assets in excess of $150K, and there are plenty on the wish list in that category, they will benefit from the Accelerated depreciation deductions for businesses.
This allows businesses to deduct 50% of the cost of a new asset on installation.
For your $1 million header, get an immediate $500,000 tax claim, with normal depreciation rules applying to the balance of the purchase.
The fine print states these new assets must be eligible for depreciation under Division 40, acquired after the announcement and that are first used or installed for use by 30 June 2021.
Accelerated depreciation deductions do not apply to second-hand assets, or buildings or capital works depreciable under Division 43.
Again, these accelerated depreciation deductions can be claimed by businesses with aggregated annual turnover of less than $500m.
Throughout the pages of AFDJ we present some of the most reliable farm equipment and supply distributors with products that qualify for instant asset write offs up to $150K.
For Accelerated depreciation buyers, we also have a wide selection of farm machines from distributors that cater for large-scale corporate farmers looking to order and install new models prior to the cut-off in June 2021.
The Accelerated depreciation deductions for businesses gives farmers the time to plan and execute purchases in excess of $150,000, to be first used or installed for use by 30 June 2021.
One of the many well-respected suppliers in this issue that can offer buyers the instant asset write off on some Supreme Vertical feed mixer models is the Forbes Machinery Centre.
Supreme vertical mixers are designed to have fewer wear points and a simplicity that gives hassle free maintenance.
While other vertical and horizontal mixers may find ways to cut corners or reduce cost, Supreme says it focuses on quality and craftsmanship.
The tub is designed with sloped walls so feed will slide easily from the top to the floor.
Because of the slope there is enough space between the edge of the auger flighting and the tub wall which creates a fast-moving volcanic action.
The unobstructed opening facilitates loading of whole bales, regardless of type or size.
Thorough mixing is assured because there are no restrictions or dead spots that can hamper material flow in the cutting and mixing process.
As a result, material won’t grind or tear apart against the sidewalls or in the corners, this preserves the quality of feed.
At the heart of the processor is Supreme’s patented vertical auger design, that delivers good performance with even the most difficult materials yet requires less power to operate than many other vertical mixers.
The specially angled top cutting knife promotes the rapid breakdown of larger bales.
At the same time the kicker plate directs material to the centre of the auger, that has a cylindrical design to efficiently move all materials from the bottom of the tub to the top.
A cutaway section on the auger allows feed to fall from the top to the bottom of the tub.
These combined functions provide quick and gentle blending of all materials in the tub.
Supreme International makes single, twin and triple auger processors with product capacities ranging from 7 to 53 cub.m.
Unlike other vertical mixers that use smaller single stage planetary drives, Supreme uses the heaviest two-stage planetary drive available.
Combined with a heavy-duty gearbox, this robust system rotates the auger through the toughest of materials.
This simple design has fewer moving parts with no chains, sprockets or countershafts to worry about.
Each Supreme machine is built to order with a large variety of options available.
For more information contact Forbes Machinery Centre on tel: 02 6852 3211.