There are a range of tax measures that are available to primary producers to help minimise tax obligations. Now is the time to review your financial estimate for the 2021 financial year. WDF can assist you with your tax planning and make recommendations on how to implement the appropriate strategies to minimise your tax obligations.
The tax measures available to primary producers include:
Accelerated depreciation measures are also available and apply to all small businesses. This allows the immediate write-off of assets costing less than the instant asset write-off threshold and the write-off of the small business depreciation pool balance when the closing balance falls below the threshold. The instant asset write-off threshold for 2021 and 2022 is as follows:
The applicable threshold is based on the date when assets have been bought and used, or installed ready for use.
The immediate deduction for a car cannot exceed the cost limit as determined by the ATO ($59,136 for 2021). If your vehicle is not considered a passenger vehicle, the car limit does not apply.
The consequence of the accelerated depreciation measures is that small business taxpayers may have reduced depreciation claims and potential profits on sale of plant and equipment in the future and this may impact your future tax liabilities.
Contributing to superannuation or a SMSF is another important and popular tax planning strategy.
Please get in touch with your WDF Professional contact or call our office if you would like to discuss tax planning initiatives before the end of the financial year.
Client Services Supervisor
By Lauren Taylor
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