The ATO has reminded primary producers that may be entitled to claim a deduction for capital expenditure incurred on their fencing assets and fodder storage assets.
Specifically, if a taxpayer incurred capital expenditure on a fencing asset:
- From 7.30pm AEST, 12 May 2015 (expect if the expenditure relates to a stockyard, pen or portable fence) deduct the whole amount in the income year in which they incurred the expenditure; or
- Before 7:30pm AEST, 12 May 2015 (or if the expenditure relates to a stockyard, pen or portable fence) – deduct and amount for its decline in value based on its effective life
If a taxpayer incurred capital expenditure on a Fodder Storage Asset:
Their deduction is limited to capital expenditure incurred for the construction. Manufacture, installation or acquisition of a fencing or fodder storage asset.
The Expenditure must have neem incurred primarily and principally for use in a primary production business conducted on land in Australia, and there are other limitations which should be considered.