NSW Farmers has welcomed the Prime Minister's announcement that the $20,000 instant asset write-off will be extended, if re-elected.
Introduced in 2015, the instant asset write-off allowed businesses to claim a deduction for the cost of an asset up to a prescribed value and had been widely used for the purchase of tools, IT equipment and even small vehicles.
While the commitment to extend the scheme for another 12 months was welcome, NSW Farmers President Xavier Martin said, farm businesses wanted to see a permanent, practical solution to support a stronger farming future.
"It's great that it's been extended but farming businesses need more certainty going forward," Mr Martin said.
"When it was $150,000 during COVID businesses used this scheme to buy utes or side-by-sides, it was a practical business support both for the buyer and the seller.
"The instant asset write-off is an important tool for managing cost of business pressures and making it $30,000 or $50,000 as some suggest would give us better certainty for those larger, more strategic purchases."
According to the Prime Minister, the threshold applied per asset - meaning businesses could claim multiple purchases from tools to computers and tablets, office equipment to kitchen equipment and coffee machines for cafes.
Mr Martin urged all sides of politics to talk to farmers about how the instant asset write-off scheme could support strategic investment, and take the opportunity of the election campaign to support a stronger farming future.
"Espresso machines and iPads are great, but you can't get a new ute for under $30,000, let alone $20,000," Mr Martin said.
"Opening it up a bit will provide more certainty and ease the decision-making process.
"This could be a real driver for rural and regional communities where agriculture underpins the whole economy."
