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No-till farming tax incentive

10th November 2011

 By BMO Associate Partner David Briese.

As part of the recently introduced carbon tax legislation, a Carbon Farming Futures program will be started with $429 million to be spent in the first six years.

Carbon Farming Futures will support research, measurement approaches and action on the ground to reduce emissions or store carbon, including support for conservation tillage equipment.

So what does this mean:
• A Refundable Tax Offset (RTO) will apply to eligible “no-till” machinery purchases from the 1st July 2012 to the 30 June 2015. .i.e. the 2012-13, 2013-14, 2014-15 income tax years.

• The machinery must be an eligible no-till seeder and can be any of the following:

1. Tine machines fitted with minimum tillage points designed to achieve minimum soil disturbance and less than full cut-out.
Minimum tillage points designed to achieve minimum soil disturbance and less than full cut-out include narrow points, knife points or inverted 'T' points.

2. Disk openers with a single, double or triple disc arrangement.

3. Disc/tine or disc/blade hybrid machine.

• The seeder must be new, i.e. not previously used by anyone.

• The entity buying the seeder must use it in a primary production business.

Give us a call and we will help you find out if you are eligible to receive this incentive.

See the full factsheet here.

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