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Thirty percent of the world’s wheat exports have been cut off from the global market as a result of the war in Ukraine. In Australia, the wheat market has moved to its highest levels since 2008, with only seven days since then when the $A daily close was higher. It’s a terrible time for those caught up in the conflict, but it marks an opportunity for Australia to move back into its previous position as the dominant supplier for South East Asian markets.
Closer to home, the floods across Queensland and Northern NSW have caused devastation across farming communities. Having experienced the devastation of livestock losses across Western Australia after the recent bushfires, and here in Esperance during the 2015 bushfires, the aftermath of assessing injured livestock, and accounting for losses is an experience many farmers are all too familiar with. My thoughts are with those who have been, and continue to be, affected by the recent floods.
As tax planning season begins to ramp up, I’ll be working closely with many of you in planning your taxation strategies for 2022. With the enormous events of the past year, from a record bumper harvest to business interruptions as a result of the coronavirus, and market volatility due to recent global events, there are a lot of considerations which will specifically affect your 2022 profit and resulting tax implications.
Working together to devise a long-term business growth strategy, along with your immediate tax planning will provide you with a level of certainty in your agribusiness going forwards, amongst a time of great uncertainty. If you’d like to work together on your overall business strategy, please get in touch. If you’re considering undertaking tax planning, and haven’t done so previously, feel free to contact me and we’ll assess the optimum time to complete your interim financial statements.
All the best,
9th March 2022
Wheat prices have hit record highs on intensifying concerns of a supply shortage because of the war in Ukraine, raising the spectre of soaring global food inflation
As hopes fade of a quick return to peace in the Ukraine, Indonesia’s flour mills are looking to Australian wheat for back up supplies. Commercial shipping from Ukraine largely stopped this week. All ports are closed and on Tuesday shipping giant Maersk told its customers it is not accepting any new orders in or out of the country.
Farmers have been left reeling by “devastating” losses of livestock and machinery amid severe flooding in south-east Queensland and northern New South Wales, with concern some may not be able to recover from the latest disaster.
Usually level-headed in an emergency, egg farmer Gordon McWilliam admits to being stunned frozen by the sheer scale of the unexpected natural disaster unfolding on his Mary Valley farm. He states, "I knew I couldn't do it on my own, and you're faced with a choice, 'Which ones do I save, if I save any?'"
If you have any questions for me, or would like me to address a topic specifically, please email me directly at melissa@smithshearer.com.au. Alternatively, complete the form below and I'll be in contact.
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