Ian Mortley and myself give a high-level overview of tax planning topics for farmers.
General tips
Cash flow management, ensuring you have the cash to pay your tax assessment when it falls due
Asset protection - sheltering your core assets from activities that may expose them to litigation
Capital gains tax planning and succession planning - ensuring the assets are held in structures that allow intergenerational asset transfer without triggering COT.
2022 tax planning tips
Timing of asset purchases - taking advantage of the instant asset write off but being aware that the asset must be installed ready for ready before 30 June - watch for supply chain disruption - treated on income account upon sale
Investing in farm improvement - pasture, fencing, water control - not as likely to be affected by supply chain disruption - treated on capital account when sold
Requires planning given recent supply chain problems
Timing of revenue recognition - timing cattle sales to defer the income recognition and, therefore, the tax. This requires herd management
Timing of expenditure - bringing expense and, therefore, the deduction into the current tax year
Farm management deposits
Averaging