Farming groups praise federal budget

Farming groups have mostly welcomed the latest Federal Budget, although they have some concerns about certain aspects.

The budget confirmed changes ensuring that primary production income will be exempt from the new 30 per cent trust tax, and that there will be no changes to small business capital gains tax concessions.

TasFarmers CEO Nathan Calman said that was an important win for farming families.

“Family farms are structured this way for a reason, and farmers were deeply concerned about what these changes could have meant for the future of their businesses,” Mr Calman said.

“This decision gives producers greater confidence and shows the government has listened to agriculture.”

The National Farmers’ Federation also welcomed the tax changes.

“There are around 40,000 trusts used in agriculture, so these are significant wins for family farm businesses and reflect the case we have consistently put to the Treasurer about how these changes would impact succession,” NFF President Hamish McIntyre said.

“Family farms are generational businesses built over decades and often represent a family’s life savings and retirement plan.

“We are pleased the Government has listened.”

Mr Calman said the government’s previously announced $10 billion fuel security package was another positive step.

“When farmers can’t access fuel or fertiliser, the whole country feels it.”

“Recent global events have shown just how vulnerable Australia can be when it comes to supply chains, so strengthening fuel security is critical.”

The budget also featured the permanent extension of the instant asset write-off, with Mr Calman saying it would help producers continue investing in machinery, infrastructure and productivity improvements.

“Farmers will always invest back into their businesses when they have confidence to do so.”

“Measures like the instant asset write-off help producers modernise equipment, improve productivity and keep farms moving forward.”

The permanent instant asset write-off was also welcomed by Mr McIntyre.

“We advocated hard for this to become a permanent feature of our tax system.

“It’s a simple and effective measure that helps farmers reduce costs and increase their productivity.”

However, Mr Calman said TasFarmers remained concerned by reduced funding for pests, weeds and regional connectivity.

“We can’t afford to lose momentum in these areas.

“Farmers are already dealing with increasing pressure from pests and browsing wildlife like deer, while reliable regional connectivity remains essential for modern agriculture.

“There will be strong debate around these changes, particularly given previous commitments made during the election.

“At the end of the day, though, Australia’s housing challenges won’t be solved unless supply starts keeping pace with demand.”

With federal government debt tipped to reach $1.5 trillion and Treasury predicting inflation will reach five per cent by the middle of the year, Mr Calman said he was concerned.

“Farmers are still getting hit from every direction, fuel, freight, fertiliser, energy, finance and insurance costs all remain high.”

“That ongoing inflation pressure is one of the biggest risks facing agriculture over the next few years.”