Property tax depreciation

Depreciable infrastructure on farms. What is it and how can you benefit?

The infrastructure on farm has a value and it is important from a tax perspective that those items are set up on an ATO compliant depreciation schedule beginning with the tax year in which possession is obtained (although retrospective valuations can be done).

When you acquire a farm (by purchase or transfer) it consists of the land and associated infrastructure such as silos, sheds, livestock yards, tanks, dwellings, dams, fences and pumps. While the land is not depreciable, the infrastructure assets are depreciable for taxation purposes.

Rice Extension Newsletter, June 2017