Fodder storage assets have been eligible for accelerated depreciation for primary producers in Australia since the legislation was introduced in August last year.
Primary producers incurring a capital expense on a fodder storage asset can deduct the cost in the same income year, even if they are only leasing the land. This legislation is playing a major role in supporting primary producers and the industry to keep more money in their pockets.
Prior to this legislation, deductions for this type of building would have taken 3 - 40 years.
Primary producers can take advantage of this government incentive with hay and fodder sheds from Now Buildings. There are no restrictions on the size or cost of these sheds, as long as they are used primarily and principally to store fodder.
This tax deduction applies to any capital expenditure you incur on construction, manufacture, installation or acquisition of a fodder storage asset. However, this only applies to fodder storage assets that are for use in a primary production business that is conducted in Australia. The fodder storage asset must be used primarily and principally for the use of storing fodder, such as hay sheds, grain storage sheds, etc. Please check with your accountant.