As 30 June approaches, primary producers in Australia still have a narrow window to legally reduce their tax bill — but time is running out. At Tax Rizz, we specialise in tax strategies for farmers, graziers, and rural businesses, and we’re sharing the most effective last-minute actions you can still take.
Whether you’ve had a bumper year or a patchy season, here’s your quick guide to EOFY tax planning.
What is a Farm Management Deposit (FMD), and how can it help me?
FMDs allow you to set aside pre-tax income in a special account — which you can draw on in low-income years.
✅ Tax benefit: Immediate deduction for the deposit year; income is taxed when withdrawn.
💡 Tip: Great for smoothing income across good and bad years.
Can I still prepay farm expenses to claim a deduction?
Yes. You can prepay up to 12 months of certain expenses such as:
- Feed and fertiliser
- Insurance premiums
- Interest on loans
- Rent or lease agreements
✅ Tax benefit: Brings forward deductions into this financial year.
What assets can I write off instantly?
Under the instant asset write-off rules, eligible businesses can claim the full cost of:
- Utes and vehicles
- Tractors and machinery
- Fencing and water systems
✅ Tax benefit: Immediate deduction = instant tax reduction.
🛑 Act fast — assets must be installed and ready to use by 30 June.
What is income averaging and how does it work for farmers?
Income averaging smooths out your taxable income over five years — ideal for those with fluctuating incomes.
✅ Tax benefit: Reduces tax in high-income years by spreading it over lower-income periods.
Are 100% deductions available for infrastructure?
Yes! You can claim 100% deductions for:
- Fencing
- Water facilities
- Fodder storage
✅ Tax benefit: These are capital works deductions — claim the full amount in year one if eligible.
Should I review my business structure before EOFY?
Absolutely. Now is the time to assess whether you’re operating under the most tax-effective structure:
- Family trust
- Partnership
- Company
✅ Tax benefit: The right structure can reduce tax, protect assets, and simplify succession planning.
Can I still access capital gains tax (CGT) concessions?
Yes, especially if you’re:
- Selling or transferring your farm
- Retiring or passing the business to the next generation
✅ Tax benefit: The 15-year exemption and retirement exemption can significantly reduce or eliminate CGT.
Is deferring income a smart strategy?
Yes — if you delay the sale of livestock or crops until after 30 June (where possible), the income will count toward the next financial year.
✅ Tax benefit: Useful if you’ve already had a big income year.
Are there more tax strategies specific to my situation?
Definitely. Each farm is different — rainfall, commodity prices, input costs, and succession goals all affect your tax position.
💼 At Tax Rizz, we:
- Customise strategies based on your individual needs
- Help with FMD planning, asset write-offs, GST and PAYG obligations
- Ensure compliance while optimising tax savings
✅ Final Checklist: What You Should Do Right Now
| Action | Deadline |
| Deposit into an FMD account | Before 30 June |
| Prepay eligible expenses | Before 30 June |
| Purchase/install eligible assets | Before 30 June |
| Book a structure/tax review | As soon as possible |
📞 Need Help Before 30 June?
Time is tight — but you still have options. Contact us for expert advice tailored to your primary production business.
📧 Email: admin@taxrizz.com.au
📞 Call: 03 8789 9786
🌐 Visit: www.taxrizz.com.au
📸 Instagram: @taxrizz_charteredaccountants