Horse agistment Tax deductions

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Member for

5 months
nq1
Last seen: 10/20/2019 - 19:08
Joined: 08/23/2019 - 18:29

Horse agistment Tax deductions

Hi fellow farmers, at this stage im an a very amateur farmer, my partner and i have just bought 50 acres in the Adelaide hills.
We have two horses at the moment, and about 5 big paddocks, but we were hoping to replace alot of the existing fencing and fence up some new paddocks. Once we are in the right position we are planning on turning it into a horse agistment center.

I have had a read on the ATO about primary production, and from what i can see, Horse agistment doses not really apply as primary and production.

I am hoping i have read this incorrectly, please can someone correct me if im wrong. If this is case does anyone know of another way around this to still claim deductions from the farm.

Any Advise will be greatly appreciated

Cheers

Forums
Last seen: 01/25/2020 - 12:13
Joined: 02/28/2011 - 14:19

Hi,

Welcome to the small farm forum and thanks for the question.

Please find a reply below on behalf of our small farm consultant Allen.

“While the potential horse agistment business may not be classified as a primary production business, you may still be able to claim some of your expenses as business related tax deductions. If you have no income while setting the farm up these expenses may not be able to be claimed in the year they were spent, but could still be claimed in a following year. Look up ‘deferred non-commercial business losses’ on the ATO website to get an understanding of how this is possible. 

If you specifically wanted to be a primary producer, you may need to look at alternative opportunities. This could be trading cattle, sheep, free range poultry or horticulture, and they would allow you to utilise the additional tax breaks of primary production on the available land you have. Putting critical infrastructure like water and fences in the right place initially can have many long term benefits. 

As always, seek out a reputable taxation accountant with experience dealing with primary production clients and discuss with them your specific concerns.”

Regards,

Charlie

 

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