QFF welcomes tax facelift for modern farming

QFF welcomes tax facelift for modern farming

Queensland Farmer’s Federation (QFF) welcomes the federal government’s announcement that will encourage carbon abatement activities in the primary production sector and help Australia deliver on its net zero emissions target by 2050.

The concessional tax treatment to primary producers that generate revenue from the sale of Australian Carbon Credit Units (ACCUs) and biodiversity certificates will provide farmers with an estimated $100 million benefit through the tax system over the forward estimates.

“Farmers are the natural custodians of the land and are leading the world in the development and implementation of on farm initiatives and practices that are delivering strong environmental outcomes and assisting the nation to deliver on its net zero emissions target by 2050.” said Ms Jo Sheppard, CEO of QFF.

“These changes will clarify current confusion and alleviate financial concerns for farmers participating in carbon and bio-diversity initiatives in regard to managing their tax arrangements.”

“As more environmental markets emerge in the coming years, ongoing changes to the Tax Act will be required to support farmers to participate in meaningful on farm environmental initiatives. The environmental markets space is evolving quickly, and it is important that the Australia Tax Act and other legislation keeps pace.”

Under the new tax regime, farmers will treat revenue from the sale of ACCUs as primary production income, providing access to income tax averaging arrangements and the Farm Management Deposit scheme. Revenue from ACCUs will be recognised in the year of sale to support cash flow. The treatment of biodiversity certificates will be aligned with the new tax regime for ACCUs.

Source: QFF