Cultivate Success: The Essential EOFY Checklist for Farm Businesses

July's here, which means it's time to think about more than just finalising your books for your annual tax work. Think of it this way – you wouldn't head into seeding season without checking your machinery first. The same goes for your farm finances. A bit of proactive planning now can save you headaches later and put more money back in your pocket, ensuring your farm business thrives.

We've put together a straight-talking EOFY checklist you can grab and work through at your own pace. [Download your checklist here] – no fancy stuff, just the practical steps that actually matter for Australian farmers.

Getting the Most Out of Your Farm Machinery and Equipment Write-offs

Your machinery and infrastructure cost serious money, and the tax office knows it. There are decent rules in place to help you claim back what you can, but you need to know how to use them properly.

If you're in farming, special rules apply for claiming deductions on assets like water systems, fencing, and grain storage, allowing you to claim more, faster. Additionally, farming businesses may be eligible for initiatives such as instant asset write-offs when investing in new or used equipment. For more information about the instant asset write-off, we encourage you to visit the ATO website or reach out to us to discuss how this may impact your individual circumstances.

As with all of the items discussed in this article, proactive planning and timing the machinery and equipment purchases right is vital. Similarly, planning any tax write-offs you are eligible for with your cash flow and loan payments makes good sense. This helps smooth out the ups and downs while making sure you're claiming everything you're entitled to. Keep good records of what you've got – it's essential if you want to get the full benefit.

Valuing Your Stock and Inventory

How you value what you've got sitting in sheds can make a real difference to your tax bill and cash flow.

Grain farmers have three main options: what it cost you to grow it, what you could sell it for right now, or current market prices. Each one works differently depending on what's happening with prices and your business planning goals.

Whatever method you pick, stick with it each year. Write down what you're doing and why – it keeps the tax office happy and helps you make better decisions down the track.

Making Super Work Harder for You

Super isn't just something that happens in the background, it's actually a good way to build wealth and proactively plan for handing things over to the next generation. The tax benefits offered via superannuation can really add up over time.

It’s worthwhile considering whether additional contributions into superannuation may be a beneficial tax planning strategy – particularly if you are expecting a good year and can afford it. Super can also be a tax-effective vehicle when it comes to farm succession and estate planning. We recommend having a chat to us about this.

All in all, when it comes to superannuation we recommend the following:

Start planning early in the financial year
Check in with us regularly
Keep good records.

Super rules can get complicated though, so we always recommend communicating with us to ensure you are remaining compliant.

Capital Gains Tax – What You Need to Know

When you're thinking about selling assets or passing them to family, Capital Gains Tax (CGT) is something you’ll need to get your head around. The mindset shouldn’t be around dodging tax, rather, it’s about timing things right so you don't pay more than you need to.

Farmers may be able to access some decent breaks here, including exemptions for the family home and various small business concessions like the 15-year exemption and retirement exemption. As always, everyones situation is different, and we recommend talking to us about exactly what you may be entitled to.

Key thoughts: keep good records from day one and plan ahead. CGT exemptions can save you thousands, but you need to set things up properly to access any exemptions.

Tax Breaks and Rebates You Might Be Missing

There are quite a few tax breaks designed for different types of businesses. The trouble is, many people don't know about them or forget to claim them.

Farmers may be able to make use of Farm Management Deposits to set aside pre-tax income, smooth out income over multiple years, and claim fuel tax credits. It's also worth looking into research and development incentives, export grants, and instant write-offs.

Make it a habit to check what you're eligible for each year, keep detailed records, and have regular catch-ups with your accountant. These aren't one-off deals – they're ongoing opportunities that can really add up.

Why Good Records Matter

Keeping accurate financial records isn't just about staying on the right side of the tax office – it's about understanding how your business is really performing. Think of your financial data like a car dashboard - it tells you what's working and what needs attention.

Regular chats with us will help you turn those numbers into useful information. Your records tell the story of how your business is tracking, help you spot trends, and show banks that you know what you're doing.

Ready for the Next Step?

These strategies aren't just theory – they're practical tools that can make a real difference to your bottom line. The key is actually doing something about it, and that starts with a conversation with us about what makes sense for your situation.

Every business is different, and what works for your neighbour might not be right for you. Getting proper advice means you're putting together a plan that actually fits your goals.