The basics

First and foremost, back up all of your records. You don’t want to lose all of the diligent work you’ve been doing throughout the year, and forward a copy to your accountant for safe-keeping.

If accounting on an accrual basis, ensure that all receivable and payables have been correctly accounted for before EOFY.

Make sure that expenses on credit cards and other accounts have been picked up so that tax-deductable expenditure isn’t over looked and that unpresented cheques (up to and including 30 June) are included in your June bank reconciliation.

Your business

Consider whether or not any changes to business structure should be considered (for flexibility, tax planning, succession planning, or other reasons).

A new financial year is the logical time to do this so that taxpayers don’t have to worry about the additional compliance requirements associated with 2 different entities operating in the one financial year.

You might also consider whether or not you could be doing something with superannuation and speaking with your advisers about whether or not there are opportunities that are suitable to your circumstances.

Your accounting system

Like a change of business structure, a change of accounting system is best considered at the change of a financial year.

Consider whether or not your existing system is meeting your needs, and if not what other options might be available.

There are some new developments with some software companies such as paddock and livestock recording that can link in with financial packages.

Your employees

Make sure that everything is in order for EOFY reporting for wages (including superannuation, PAYG withholding, workers compensation and payroll tax if applicable), June Business Activity Statement (BAS), and general financial year close off.

Ensure that all of your records are in order for your accountant, including documentation for asset purchases (including any equipment finance, contracts/settlement statements for property purchases, etc).

Be prepared with a reconciliation of your livestock numbers, fodder on hand and other assets that your accountant will be wanting.

The future

EOFY is also a good time to consider whether or not there are strategic opportunities for your business and to set some goals for the future.

This could include some of the big picture items such as succession and estate planning, purchase of another property, evaluating your mix of enterprises, considering property improvements, etc.

The 2019 Federal Budget may also change how your tax return will look in 2020.

The Morrison Government increased the primary producer luxury car tax refunds on vehicles purchased after 1 July 2019. Eligible primary producers will be able to apply for a refund of luxury car tax of up to 10,000.

Additional resources for drought assistance was also announced in the Budget and an Agriculture Stewardship Package will come in effect next financial year.

The post 5 tips that’ll make EOFY a piece of cake appeared first on AustralianFarmers.

The reality is that Australia’s support for farmers is among the most meagre in the world, second only to New Zealand in the OECD.

This is an incredible fact, remembering that Australia is one of the world’s largest agricultural exporters – competing in markets where farmers receive whopping handouts.

How does Australia compare?

The report found that Australia’s ‘Producer Support Estimate’ (PSE, an estimate of public money which flows to primary producers – not necessarily as cash) was one of the lowest in the OECD, with PSE constituting only 1.4% of gross farm income (read on to see what this consists of).

By contrast, if you’re a farmer in the Iceland, Norway or Switzerland – more than half your farm income is delivered via government support measures!

What subsidies do exist for Aussie farmers?

The OECD study of farm subsidies found that Australia made no payments for commodity production (which is how other OECD countries dish out their payments). Instead, the bulk (42%) is channeled into programs to help manage seasonal variability.

Given Australia’s variable climate – prone to crippling drought and flood events – the Government has established schemes whereby farmers in need can access concessional loans, to reduce the burden of interest payments in difficult times.

Rather than being a handout, this scheme is a genuine loan – and farmers are expected to pay back every penny with interest over an agreed period.

This is similar to programs available to households to switch to solar panels, or energy efficient light bulbs – just on a bigger scale!

We also have frameworks like ‘Farm Management Deposits’ which help farmers save money in good years to help them weather downturns when they come.

The bulk of the remainder of our ‘subsidies’ takes the form of environmental programs. Given farmers look after 70% of Australia’s landmass, they play an important role in making sure our natural resources are protected for all Australians.

In turn, the Government works with farmers through Landcare, the Murray Darling Basin Plan and other programs to help implement positive environmental changes. This is similar to programs available to households to switch to solar panels, or energy efficient light bulbs – just on a bigger scale!

The verdict

Farmers relying on handouts is a myth! The next time you hear that being peddled, you can say that Aussie farmers are among the least subsidised on the planet. And they still manage to make a buck in a tough global marketplace, which is anything but a level playing field.

Is this a claim you hear thrown about? Log in and leave us a comment below with your thoughts on the matter!

The post Farm subsidies in Australia: The facts appeared first on AustralianFarmers.