About 52% of land mass in Australia is dedicated to agriculture and its production had a gross value of $48 billion in 2013. Victoria is the second smallest state in Australia with less land for farming than most Australian states but it is the biggest contributor to the country’s agribusiness economy. At Sky Accountants – Farm Accountants Ballarat & Bookkeepers Ballarat, our goal is to empower you to become a better, more finance-focused and well-rounded entrepreneur. Contact us at firstname.lastname@example.org or 1300 328 855
Australia’s grain production has increased by 10% in recent years. Victoria has the largest dairy cattle among all states and supports a wide range of wool, crops and livestock production for export and meat for both domestic and foreign markets.
Primary producers have access to special tax concessions that may affect which amounts they include in their assessable income each year. The concessions also affect when they have to pay their income tax as they may be able to make two PAYG instalments each year, rather than four. They also have access to primary production averaging that lowers tax rate in years where they earn above-average income. They may also be exempted from non-commercial losses rules, which typically restrict businesses from offsetting their losses from a non-commercial business activity against their other assessable income.
According to the ATO, an individual, trust or company must carry on a primary production business, which is engaged in plant or animal cultivation, fishing or pearling, tree farming or felling to qualify as a primary producer.
A business of primary production must have business activity that’s of a significant commercial purpose or character, intended to make a profit. Operations must be regular and repetitive and carried out the same way as other businesses in the same trade. You are not carrying on a business if the activity is more of a hobby, form of recreation or sports. Those who establish or manage trees for carbon sequestration and not for felling in a business of forestry operations are not primary producers as well.
There are many definitions of primary production and some farmers add value to their primary production through manufacturing, distribution, hospitality and eco-tourism with their business structures and taxation accounting requirements.
Australian farmers are planning their succession strategy to ensure future security and viability of landholdings. Through in-depth knowledge and helpful advice, farmers can manage change and transition strategically instead of letting circumstances dictate their future, which may be less than ideal for family members. It takes a lot of considerations among expert advisers and stakeholders when planning and preparing for change. It is never too early for succession planning.
Farm Accountants Ballarat
As you look for different ways to grow and improve your business, seeking professional advice could prove to be an important and helpful decision.
You can click here to speak to a business, accounting and bookkeeping firm. We will give you a call to know more about your needs. We will explain to you how we can improve your business.
We would love to help you formulate investment strategies and streamline your processes to take your business to the next level. Our goal is to help you grow your business, find ways to invest more and increase your productivity.
Here are two other ways we help business owners grow their business:
- Take our free online assessment and see how much your business is currently worth (free 30page detailed report included)
- If you are looking to change Accountants or need advice on how to grow your business, organise a 1on1 session with a Sky Business Expert here
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Phone: 1300 328 855
Office Address: 902 Howitt Street, Wendouree, Victoria 3355, Australia
Postal Address: PO Box 2234, Bakery Hill, Victoria 3354
Business Accountants Melbourne | Bookkeepers Melbourne | Mortgage Broker Melbourne | Financial Planning Melbourne
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Phone: 03 97444522
Sunbury Office Address: Suite 13, 33-35 Macedon Street, Sunbury, Victoria 3429, Australia
Gisborne Office Address: 45 Hamilton Street, Gisborne, Victoria 3437, Australia
Postal Address: PO Box 270 Gisborne Victoria 3340