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As the deadline for the temporary full expensing tax incentive approaches,
machinery dealers are grappling with frustrating delays in delivering orders
placed last year.
These delays have been compounded by customs and quarantine processes at ports,
causing difficulties in transporting machinery to Western Australia. While some equipment
like combine harvesters remains available, the supply of self-propelled sprayers, tillage
equipment, and high horsepower tractors is limited, resulting in significant delays.
Unfortunately, it seems unlikely that dealers will meet the June 30 deadline for delivering
fully inspected, serviced, and accessorized machinery.
It is important to note that the Australian Taxation Office (ATO) lacks the authority to grant
full expensing for machinery that cannot be delivered to farms by June 30, regardless of the
circumstances. This situation presents a challenge for farmers who have invested in new
machinery but may not receive it in time to benefit from the incentive. Despite requests
from the National Farmers Federation for a grace period, allowing farmers to still qualify for
the incentive, the government has yet to respond.
As the situation unfolds, it is crucial to closely monitor updates and developments. Farmers,
machinery dealers, and industry stakeholders eagerly await any government responses or
potential policy changes that could provide relief for those affected by delivery delays. The
National Farmers Federation continues to advocate for a grace period to ensure that
farmers can still benefit from the full expensing tax incentive, even if their machinery is not
delivered by the June 30 deadline.
The looming June 30 deadline for the full expensing tax incentive has presented challenges
for machinery dealers and farmers alike. Delays in machinery deliveries, particularly in
Western Australia, have been further complicated by customs and quarantine processes at
ports. The inability to deliver inspected, serviced, and accessorized machinery by the
deadline jeopardises farmers' eligibility for the incentive. While the ATO lacks the authority
to grant exceptions, there is hope for a potential grace period to be introduced by the
government. As the situation evolves, it is crucial for all stakeholders to stay informed and
seek updates from relevant authorities.
If you’re concerned new machinery may not be delivered by the June 30 deadline, and the
impact this may have on your tax obligations, please feel free to reach out to us for more
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