Federal Budget
The Federal Budget will deliver Gympie’s agricultural sector benefits from the expansion of the instant asset write-off, changes to business and personal tax rates, drought measures, backing our dairy farmers, and targetted measures to open up access to markets.
Member for Gympie, Tony Perrett, said that announced changes will help deliver improved conditions for our largest industry sector to get on with the job of providing world class products to domestic and overseas markets.
“This is a multi-pronged approach to delivering the right conditions to help the sector do what it does best,” Mr Perrett said.
“Together with forestry and fishing the $300 million agricultural sector delivers 13.9% of the total Gross Regional Product for Gympie.
“The Federal Government will provide $29.4 million for targetted export growth by breaking through technical and scientific trade barriers, addressing biosecurity, pest, and disease concerns to get our products to more customers around the world.
“We produce the best food and this will give Gympie primary producers a chance to get to as many markets as possible.
“It is backing our dairy farmers with an $8.7 million for an 11 year commitment to the mandatory Dairy Code of Conduct.
“Establishing the $5 billion Future Drought Fund will encourage primary producers to plan for and mitigate against drought.
“A major win for the sector is freeing up funds by reducing tax rates and increasing opportunities for instant asset write-offs.
“Most farmers and graziers run small family businesses and partnerships which don’t generate big turnovers.
“The sector accounts for 26.8% of our 4,380 small businesses.
“They will benefit greatly from a reduction of the marginal tax rates to 30% and small business rates to 25%.
“They will be able to cover asset purchases through a 20% increase in the instant asset writeoff and in expanding it to include medium businesses.
“Local employers frequently tell me how they use the ability to claim immediate deductibility for asset purchases to reinvest and grow by upgrading machinery and equipment.
“Bumping the instant asset write-off from $25,000 to $30,000, and expanding it to include medium businesses with a turnover of up to $50 million, is great news for most Gympie businesses.
“It will help buy a new fridge or coffee machine in a small coffee shop, or a tradie to buy a new ute, van or tools.
“As the largest employer group small business is the best placed to provide employment opportunities and this will help them to borrow, invest, reinvest, and create more jobs.