Legislative Council: Tuesday, May 30, 2023


Instant Asset Write-off

The Hon. B.R. HOOD (16:11): I seek leave to make a brief explanation before addressing a question to the Minister for Primary Industries and Regional Development on the instant asset write-off.

Leave granted.

The Hon. D.G.E. HOOD: Farmers are required to receive and install new assets prior to 30 June 2023 in order to qualify for the instant asset write-off; however, global supply constraints mean that many are still waiting on their machinery. National Farmers' Federation President Fiona Simpson has stated that some farmers are still waiting on delivery of their equipment three years after purchasing the assets.

Due to forces outside their control many farmers are set to lose out on significant tax savings unless an extension is granted to the federal government's instant asset write-off scheme. The cost of farm machinery assets are usually in the six-figure range, and while the extension has been granted it is only on assets valued at up to $20,000.

My question to the Minister for Primary Industries and Regional Development is: has the Minister for Primary Industries and Regional Development spoken with or written to her federal counterparts to advocate for reconsidering the $20,000 limit on assets within the extension of the instant asset write-off on behalf of South Australian farmers who are still waiting on machinery ordered before the 30 June 2023 deadline?

The Hon. C.M. SCRIVEN (Minister for Primary Industries and Regional Development, Minister for Forest Industries) (16:12): This is an important matter. It does, of course, relate to the federal government and our taxation regime. My understanding is that there has been frequent advocacy and strong advocacy by peak bodies, particularly national peak bodies such as the National Farmers' Federation. In regard to federal matters, I suggest that that is being done very well by those advocacy bodies.

I know the National Farmers' Federation has certainly done a number of initiatives in recent times. I was fortunate to meet with the National Farmers' Federation several times this year at a number of different events and forums. I must say that, whilst perhaps the National Farmers' Federation and my side of politics are not necessarily often closely aligned, I have been very pleased with the level of engagement that they have been able to have with both myself as minister for the South Australian jurisdiction and, as I understand it, also with Senator Murray Watt, the federal minister. I'm sure they are continuing in their good work.