Farm Business Services
Tax Planning for your Farm
The term "Tax Planning" is used to describe the steps involved in trying to legally minimise the impact of taxation on the operation of the farm. These steps may include:
- Ensuring that all available farm deductions are claimed;
- Deferring income to delay tax by using the optimal livestock valuation method;
- Timing income and deductions as appropriate;
- Reducing the rate of tax by splitting income;
- Structuring the business correctly to minimise Fringe Benefit Tax and Income Tax;
- Utilising the small business concessions to minimise Capital Gains Tax;
- Understanding how the new Superannuation reforms can help farming families.
The Field Group can assist farming businesses with tax planning by reviewing their financial records and advising on the best way to minimise tax. Consultation with an experienced tax adviser before transactions are entered into can lead to significant savings.
Obtaining Farm Finance
Farm businesses who have borrowed to buy farmland or plant and equipment must ensure that the borrowed funds are used wisely in the business. Borrowed funds have a cost which must be justified against the return being obtained from such loans. After all, there is no point in borrowing if the cost and risks associated with the loan are too great when compared with the returns from the business.
The Field Group can assist with advising on farm finance needs and by providing detailed and up to date financial information to financiers by:
- Completing all Balance Sheets, Profit and Loss Statements and Tax Returns to assist with loan applications;
- Assisting with the preparation of a farm plan and cash flow budget forecasts incorporating the farm trading operation, capital expansion plans and personal off farm drawings.
Farm Succession Planning
The typical problem faced by farmers in succession planning is that the farm is not big enough to support more than one family and the farming parents cannot provide adequately for all their children without placing an excessive financial burden on the child who is to inherit the farm.
The Field Group can assist with some of the practical issues which arise in succession planning such as:
- Helping to formulate a succession plan by gathering information, formulating short and long term objectives and arranging a family conference.
- Protection of family assets through the use of Trusts and estate planning.
- Working with the Farm owner's solicitor to ensure all wills and powers of attorney are in order.
Government Assistance Programs
The Field Group can assist farm businesses with applications for all forms of available government assistance including drought relief special grants, Centrelink payments and interest rate subsidies.
Contact: Gerry Schembri