Tax deductions for primary producers

Overview

The general principles of uniform capital allowance (UCA) apply to most depreciating assets used in primary production. However, the decline in value of the following primary production depreciating assets is worked out using special rules:

• water facilities used to conserve or convey water
• fencing assets
• fodder storage assets, and
• horticultural plants (including grapevines).

A fencing asset includes a new fence, as well as any structural improvement, repair of a capital nature, alteration, addition or extension to an existing fence.

Typical fencing assets include:

• posts
• rails
• wire
• droppers
• gates
• fittings
• anchor assemblies

A fodder storage asset is primarily and principally used to store fodder. It may also be a structural improvement, a repair of a capital nature, or an alteration, addition or extension, to an asset or structural improvement, that is primarily and principally for the purpose of storing fodder.

Typical fodder storage assets include:

• silos
• liquid feed supplement storage tanks
• bins for storing dried grain
• hay sheds
• grain storage sheds
• above-ground bunkers.

A water facility is either:

• a plant or a structural improvement that is primarily and principally for the purpose of conserving or conveying water, including a repair of a capital nature, an alteration, addition or extension to that plant or structural improvement
• a structural improvement that is reasonably incidental to conserving or conveying water, including a repair of a capital nature, addition or extension to that structural improvement.

Check if you can apply

To be eligible, you must be a primary producer as defined by the Australian Taxation Office (ATO)