Menu
you are here: Home > News and Events
Welcome to Twomey Talk where you can take advantage of the specialist knowledge of our team & learn their thoughts on various issues that may
impact YOU!

NEW REBATE FOR DRONES

The NSW quad bike safety rebate has been extended to include the purchase of a drone.  Only one $500 rebate per business can be claimed towards the purchase of an eligible drone. 

More details can be found here: https://www.safework.nsw.gov.au/resource-library/agriculture,-forestry-and-fishing-publications/quad-bike-pubs/quad-bike-safety-improvement-program-FAQs

All primary producers can claim a tax deduction for the full cost of fodder storage assets if the asset was acquired o first used to store fodder on or after 19 August 2018. Fodder storage assets include silos, bins, hay sheds, grain sheds and bunkers.

All primary producers can claim a tax deduction for the full cost of fencing and water facility assets if the asset was acquired on or after 12 May 2015. Water facility assets include dams, tanks, bores, pipes, pumps and windmills.

A new Emergency Water Infrastructure Rebate is now available to primary producers in New South Wales. The rebate covers 25% of the cost of purchase, delivery and installation of water infrastructure that addresses animal needs and improves resilience to drought. 

Eligible activities include:

  • Pipes
  • Water storage devices such as tanks and troughs
  • Pumps
  • De-silting of existing dams
  • Bores and associated power supply.

Ineligible activities include:

  • Construction of dams
  • Water infrastructure for uses other than to supply water for livestock.

The rebate can be claimed for eligible water infrastructure expenses since 1 July 2018, up to a maximum rebate of $25,000 per farm enterprise. Apply at www.raa.nsw.gov.au/grants/emergency-water-infrastructure-rebate-scheme.

EMERGENCY DROUGHT TRANSPORT SUBSIDY

The amount that can be claimed under the NSW RAA Emergency Drought Transport Subsidy has increased from $30,000 to $40,000.  The subsidy can be applied for the cost of transporting fodder, water to a property for stock or domestic use, stock to and from agistment, and stock to sale or slaughter.

The subsidy covers up to 50% of the full cost of freight up to a maximum of $5 per kilometre and 1,500 kilometres per journey.

Applications close 30 June 2019.

Apply at www.raa.nsw.gov.au/grants/transport-subsidy-emergency-drought-relief.

BUY A BALE

Twomeys staff August morning tea raised a massive $2,062.40 for Rural Aid's Buy a Bale campaign, including dollar for dollar matching by the Count Charitable Foundation.

Twomeys also makes a monthly donation to The Count Charitable Foundation which in turn has also donated $10,000 to both Drought Angels and Aussie Helpers.

RURAL LEASES – TIPS AND TRAPS

It goes without saying that all rural leases should be documented; even leases for small parcels of land.

One of the issues that parties should pay particular attention to is that of repair, maintenance and capital upgrades. There are no fixed rules and the responsibility for these costs needs to be negotiated in the context of the term of the lease, the rent being charged and the state of the farm at the commencement of the lease. The general starting point with many leases is that the landlord pays for capital/structural replacements and the tenant pays for repairs. The parties need to be aware of those items where the definition of repair/replacement is grey; they also need to take into account the requirement for insurance.

One issue tenants need to be particularly mindful of is whether the landlord is required to replace a capital item if it is destroyed. It is often the case in commercial leases that the landlord has no such obligation and where leases have been based on commercial leases these type of clauses may remain. These issues are especially important in irrigation leases as the costs of repair and replacement of pumps and irrigation infrastructure can be very high.

It is good practice for tenants and landlords to agree a farm condition report at the commencement of the lease. This report should be as comprehensive as possible and where practical include an agronomists report detailing the state and condition of the paddocks including soil reports and weed reports.

One of the greatest areas of dispute at the end of a lease is around the weed burden in paddocks.

In NSW the Agricultural Tenancies Act contains provisions around compensation at the end of a lease. If a party has a dispute they should seek advice promptly as the deadline under the ATA for bringing a claim is a very tight 3 months.

The $20,000 Instant Asset Write-off for small businesses with a turnover of less than $10 million is proposed to be extended to 30 June 2019. This change is not yet law.

RURAL FINANCIAL COUNSELLING SERVICE

Rural financial counsellors help farmers who are dealing with, or are at risk of, financial hardship.

Rural financial counsellors can:

> Help identify financial and business options, including negotiating with lenders

> Help develop an action plan > Help access the Farm Household Allowance (FHA)

> Provide information about government and other assistance schemes

> Provide referrals to accountants, agricultural advisers and educational services

> Provide referrals to Department of Human Services and to professionals for succession planning, family mediation and personal, emotional and social counselling.

There are 30 Rural Financial Counsellors located throughout

NSW, including offices at Young, Forbes, Dubbo, Mudgee, Ganmain, Crookwell and Yass-Gundagai.

A full list of Rural Financial Counsellors in NSW and their contact details can be found at:

http://www.agriculture.gov.au/ag-farm-food/drought/assistance/rural-financial-counselling-service/nsw

ATO ASSISTANCE

The Australian Taxation Office can help people affected by drought and other natural disasters by: allowing more time to pay tax debts without incurring interest charges and/or by arranging for tax debts to be paid in instalments without interest charges.

In special circumstances, the Commissioner for Taxation may release individuals from payment of income tax, fringe benefits taxes and some other taxes where it is shown that payment would cause serious hardship. The Tax Office will look at circumstances on a case–by–case basis.

FARM MANAGEMENT DEPOSITS

The Farm Management Deposit scheme enables primary producers to make tax-deductible deposits of up to a total of $800,000 during prosperous years and then redraw them (and pay tax on them) in less prosperous years.

Deposits must be held for a period of at least 12 month, unless the business subsequently experiences severe drought.

Farm Management Deposit balances can be offset against other primary production loans or debt to reduce overall interest paid. All major banks have now promised to offer offset facilities. Contact your bank manager for more

information.

www.ato.gov.au/Business/Primary-producers/In-detail/Farm-management-deposits-scheme