Proposed Changes to Irrigator Grant Tax Arrangements
August 30, 2012
Proposed changes to the taxation arrangements for payments made under the Sustainable Rural Water Use and Infrastructure Program (SRWUIP) were announced by Federal Ministers, Tony Burke and Simon Crean on the 18th of February 2011.The proposed changes are to be applied from 1 April 2010. Click here to read
The Assistant Treasurer David Bradbury made this announcement on the 13th of July. To read it, Click here
The Assistant Treasurer released explanatory notes on the new proposed taxation arrangements to water infrastructure improvements payments. This can be found by clicking here
The four relevant documents are listed on the right hand side bar. Click on each one to download and read them.
To read what the Australian Tax Office released on the subject, Click here
While larger irrigators and irrigation authorities will welcome the changes, smaller operations may well be disadvantaged as per the Weekly Times article of August 15. Click to read
It would be advisable for local irrigators who have participated in government funded programmes to talk to their accountant about the proposed changes.
Irrigators could face an unwanted financial burden.
Under current legislation, an irrigator with a turnover of less than $2 million or net assets less than $6 million could capitalise on the capital gains tax concessions to reduce their capital gains to zero.
The proposed changes deem all taxpayers to have received non exempt, non assessable income. As well no deductions are available for related expenditure.
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