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Agribusiness: Big Business - Big Taxation Issues

Published on 09 Jun 2006 | Took place at Kings Park Function Centre , WA

Agriculture continues to be one of the mainstays of the Australian economy and accordingly continues to provide complex issues for advisers.

Developments which have combined to change the landscape for advisers include:
- the availability of new financial products
- the emergence of Corporate agriculture
- growth in the size of agricultural businesses and holdings.

Advisers are being confronted with taxation issues and transactions that are both more complex and more substantial.

This seminar will enable participants to interact with leading local and interstate presenters in considering some of the important contemporary taxation issues which advisers face.

Get a 20% discount when you buy all the items from this event.

Individual sessions

Effectiveness of tax planning strategies for primary producers

Author(s):  Harry M RIGNEY

How often have advisers heard from their clients that that they will 'spend a pile of money at year end to save tax', or 'stick money into farm management deposits or superannuation' or maybe that 'averaging will work to our advantage this year'.

But are these strategies truly effective given changes to legislation?

This paper explores tax planning strategies including superannuation, farm management deposits, averaging and the timing of derivation of income and deductibility of deductions in respect of tax planning strategies utilised for primary producers.

Materials from this session:

Using agibusiness to solve tax issues

Author(s):  Peter YOUNG

Many accountants are now using agribusiness as a way to solve a number of tax issues. This strategy focused presentation looks at how agribusiness is being used to provide a solution to capital gains tax issues as a solution to Division 7A problems and also as a method to extract cash from a corporate entity. These solutions are pro-active and they work.

  • The unique features of Agribusiness can solve tax issues.
  • Find out how to solve a Division 7A problem for a client.
  • Cash extraction from a corporate entity without the immediate tax problem.
  • Pro-active capital gains tax planning for your clients.
Materials from this session:

Taxation implications of financial products available to primary producers

Author(s):  Craig RIDLEY

This presentation considers the general issues relevant to financial products:

  • timing of income recognition
  • impact of cash v accruals decision (STS)
  • trading stock issues
  • GST treatment
  • treatment of sophisticated products - eg. futures, options, hedging.
Materials from this session:

Financial products for primary producers

Author(s):  Richard KOCH

Futures, contracts, swaps go with the grain taxation implications of financial products available to primary producers.

The financial products Australian farmers have at their disposal have undergone a virtual grain marketing revolution in recent times with an array of marketing and pricing innovations becoming available.

Larger and more progressive farming clients are likely to be using some combination of products to manage their price risks, including possibly commodity swaps, spot and forward cash contracts, basis contracts hedge-to arrive contracts grain swaps and options.

This paper will assist advisers in sorting through the available options and determining the tax treatment.

Materials from this session:

Clearing the decks

Author(s):  John KELLY

An analysis of the capital gains tax and capital allowance and other income tax issues resulting from the disposal of farming assets.

The dust has settled from the clearing sale and you, as the Adviser, are left with the final contract documents.

Establishing the final position and crunching the numbers is generally a significant chore, however the problem invariably compounds when you drill down into the many complex taxation issues. This case study style paper will examine the capital gains tax, capital allowance and other income tax issues resulting from the disposal of farming assets.

Are the gains balancing adjustments, capital gains, or recoups of expenditure on items treated concessionally for primary producers? How are gains calculated and how do these different divisions interact?

Materials from this session:

Developments and trends in Australian farming and practices

Author(s):  Tim JOHNSTON This paper provides advisers with an insight into the current state as well as recent trends and developments in Australian farming.

Materials from this session: