Given the highly capital intensive nature of primary production activities and the special capital allowance provisions available it is critical that deductions for the various capital expenditure items are fully utilised. While all taxpayers are enjo ying accelerated deductions in the form of temporary full expensing to 30 June 2023 dealing with the landscape going forward will no doubt provide challenges. This presentation provides a summary of the capital allowance provisions that are in play to 30 June 2023 and provide some future guidance.
This presentation covers the following topics:
- The extended definition of depreciating assets applicable to primary producers and identifying who is the “holder” of the item
- Deductions available for constructing dwellings to provide accommodation to employees on primary production land and the FBT consequences of providing accommodation in regional Australia.
- Deductions available under Subdivisions 40-F and 40-G ITAA97 (and the SBE provisions) for new and existing structural improvements on land used for primary production operations
- Preparing apportionments on the acquisition and disposal of items subject to the capital allowance provisions. The need for a valuation? What approach to take if you are acting for the vendor and the purchaser? and
- Identifying the long-term tax consequences that may arise from the availability of accelerated deductions including issues that may arise on restructuring with particular reference to the potential use or non-availability of rollovers.