The government is committed to helping farmers achieve a better return at the farm gate by creating a more competitive business environment, less regulation and lower, simpler and fairer taxes.
Fairer competition for farm produce
We are creating a more competitive business environment for a stronger economy and stronger agriculture sector.
- $11.4 million will be spent to boost Australian Competition and Consumer Commission (ACCC) engagement with the agriculture sector including a new Commissioner dedicated to agriculture, to encourage fair-trading and strengthen competition in agricultural supply chains.
- $13.8 million for a two year pilot programme to provide knowledge and materials on cooperatives, collective bargaining and innovative business models. This will help farmers to establish alternative business models (including cooperatives) and manage contract negotiations.
We are committed to reducing red tape from the economy by $1 billion a year. Less red tape makes business easier for farmers.
- $20.4 million to further streamline agricultural and veterinary chemicals approvals, resulting in faster access to new farm chemicals and a reduction in the cost of doing business.
- Productivity Commission reviews will look at reducing regulation for the Australian agriculture, marine fisheries and aquaculture industries.
- Improved country of origin labelling to let consumers know where food is grown and processed.
A better tax system for farm businesses
The government is continually working to ensure taxes are lower, simpler and fairer for our farmers and all Australians.
- Farmers will be able to opt back into income tax averaging after 10 years.
- From 1 July 2016, farmers will be able to double their Farm Management Deposits (FMDs) to $800,000.
- From 1 July 2016, banks can allow farmers to use FMDs as a loan offset, reducing interest costs.
- Accelerated depreciation for fencing has been simplified—farmers are able to immediately deduct the cost of new fencing in the first year of purchase.
- The Growing Jobs and Small Business package announced in the 2015–16 Budget will benefit 97 per cent of farmers.
- Through the Tax White Paper the Government will deliver taxes that are lower, simpler and fairer.
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- Fairer competition for farm produce
- Improving Farm Management Deposits