Special Disaster Assistance
Have you had storm damage on your property?
You may or may not be aware that funds of up to $50K per affected property are available under Special Disaster Assistance from the RAA. The objective of this assistance is to support the recovery of primary producers impacted by severe weather and flooding from 9 November onwards. This grant helps to pay for the costs of clean up and reinstatement of the primary production enterprise that have suffered direct damage as a result of an eligible disaster.
The closing date for the application is 16th June 2022. Further information can be found at https://www.raa.nsw.gov.au/disaster-assistance/sdg-november-2021 All the terms and conditions are defined in this document.
In order to be eligible, you must:
Be a primary producer;
Draw at least 50% of your gross income from the PP enterprise;
Contribute a part of your labour to the PP enterprise;
Hold an ABN;
Have a PP enterprise located in the defined area that has suffered direct damage as a result of this event;
Have been engaged in carrying on the PP enterprise when affected by this event;
Intent to continue the PP enterprise.
Eligible items that the funds can be used for are:
Hiring equipment or materials to clean up property or equipment;
Removing or disposing of debris, damaged goods (including livestock)
Repairing or replacing fencing and other essential infrastructure;
Purchasing/transporting fodder for livestock;
Replacing livestock;
Repairing or replacing essential plant;
Maintaining livestock health
If you think you may be eligible, have a look at the above link. The funding is available for the Local Government Areas listed in the link as well.
2021 Tax Estimate
DON'T GET CAUGHT OUT!
This year has been generally a good production year. It is a rare year that you get both good production and good commodity prices, but this year has come close. Even though many farmers have had shot and sprung grain, even feed wheat has been bringing around $230/Tonne.
It is easy to get lost in the day to day operations of your business and forget to consider the big picture items such as estimating your tax position for the year. This year has been a messy harvest, Covid, flies in your sheep, and farmers lose track of the taxable income for the year and the tax bill comes as a surprise. There are some significant advantages of taking stock of your position and doing a little planning – ie. knowing your taxable income prior to the end of the financial year. If it looks to be a significant year, most times there are strategies that you can implement to reduce this.
Some strategies that are often used are superannuation, pre-ordering and paying for fuel, fertiliser, machinery purchase and Farm Management Deposits. This year is a little different to other years in that if you order a header now, it will be a year wait before you receive it. The delivery of tractors is also being held up. Unfortunately, an item of machinery needs to be delivered onto the property before you gain the tax deduction for its purchase.
It is a little over five months to the end of financial year and for most farmers, some planning is needed. A prudent business owner will constantly look ahead and make an assessment of the problems that could be coming their way. That is why I am recommending you get a tax estimate done before May 2022.. There are a multitude of actions that can be taken to bring your tax liability under control but the strategy we recommend will depend on the size of your income for the year and the resulting tax.
If this is of interest to you, give us a call on (02) 68845542 or send us an email on admin@thefarmersaccountant.com.au. This will save you getting caught out with an unexpected tax bill when your 2021 tax returns are lodged.
Key Dates Worth Knowing
October to December Superannuation Lodgement: 28 January 2022
October to December BAS: 28 February 2022
2021 Tax Returns (generally): 15 May 2022
Wages Instalment Activity Statement (monthly): 21st following month
For superannuation lodgements, the payment for these will need to be made probably a week beforehand for the superfund to receive it by the due date.