Call for common sense reversal on budget cut

There are urgent calls for the federal government to reverse a budget decision that would see farmers, tradies and small business owners thousands of dollars out of pocket.

Justin Everitt from NSW Farmers, the state’s peak agricultural advocacy organisation, joined other industry groups in calling for a “common sense extension” to the Instant Asset Write-Off because of supply chain delays.

“Farmers and other businesses have placed orders for machinery or other equipment under the assumption they could use this scheme, only to find supply delays will make them ineligible,” Mr Everitt said.

“This will leave them thousands of dollars out of pocket at the worst possible time for business with soaring inflation and costs.

“The right and fair thing to do would be for the government to take these supply delays into account and allow businesses to claim the Instant Asset Write Off regardless of when they take delivery.”

Under the changes announced by Treasurer Jim Chalmers, the Instant Asset Write Off will end on June 30, meaning anyone who has not taken delivery of an order – regardless of when the order was placed or paid for – would have to depreciate the asset over many years. 

Some farmers had ordered expensive equipment such as tractors more than a year ago, Mr Everitt said, and were still waiting to take delivery.

“This decision will leave farmers out of pocket if the government doesn’t do the right thing,” Mr Everitt said.

“We’ve got this absurd situation where someone has paid for a tractor, but because the dealers can’t get it to them by June 30, the farmer will be left financially much worse off.

“It’s not fair and if it’s not changed, we’ll see a lot more unnecessary pressure on a lot of businesses.”