Tax offset for new no-till seeders

The Australian Taxation Office has introduced a refundable tax offset for “eligible” no-till seeders as part of the government's Clean Energy Future Plan. The offset is designed to encourage the uptake of conservation tillage practices to reduce emissions, increase soil carbon and improve productivity.

Eligible producers may be entitled to a refundable tax offset of 15% of the cost of a seeder.

An eligible no-till seeder (cart and tool) is any of the following:

• A tine machine fitted with minimum tillage points to achieve minimum soil disturbance and less than full cut-out (for example, narrow points, knife points or inverted 'T' points).
• A disc opener with single, double or triple disc blades designed to achieve minimum soil disturbance and less than full cut-out.
• A disc/tine hybrid machine with single, double or triple arrangements fitted with minimum tillage points to achieve minimum soil disturbance (for example, narrow points, knife points or inverted 'T' points).
• A disc/blade hybrid machine with single, double or triple arrangements fitted with blades to achieve minimum soil disturbance and less than full cut-out.

·         An entity can claim the refundable tax offset for more than one eligible seeder.

·         An eligible seeder must be new (or a new tool attached to a used cart) - that is, it must not have been previously used, or installed ready for use. An eligible seeder will not have been previously installed ready for use if it was held as trading stock or held ready for sale, for example, by the farming equipment dealer.

·         Eligible seeders are made up of a cart and tool that may be made of components from different brands, though the tool must be new.

·         A seeder that includes a seed bin mounted on the frame of the drill can also be eligible.

 

Optional equipment that forms part of the eligible seeder, such as work light kits and press wheels, installed at the time you first use the eligible seeder or it is installed ready for use, will form part of the cost that is eligible for the offset.

To be entitled to the refundable tax offset you need to have received a Research participation certificate for the relevant year. These certificates are issued by the Department of Agriculture Fisheries and Forestry (DAFF).

To apply for the certificate you will need to complete a Conservation tillage application form.

For more information about the survey, click here.

For more information about the offset, click here or speak to your tax agent.