Regulation Impact Statement – The Treasury
As part of the 2015-16 Budget, the Australian Government announced accelerated depreciation arrangements for primary producers who purchase water facilities, fodder storage assets or fencing assets from 1 July 2015. On 27 May 2015, the Australian Government announced the measure would be brought forward for assets purchased after 12 May 2015. Under the new arrangements, primary producers can depreciate new water facilities and fencing assets immediately, and can depreciate fodder storage assets over three years, rather than up to 50 years under the previous arrangements (for fodder storage assets). This will provide farmers an incentive to invest in their businesses, and more effectively store and use water and fodder to better manage periods of drought. A Regulation Impact Statement (RIS) was prepared and certified by the Treasury under the Australian Government’s best practice regulation requirements, and has been assessed as compliant and consistent with best practice by the Office of Best Practice Regulation (OBPR). The RIS estimates that the measure will reduce regulatory costs for primary producers by $1.4 million per year by reducing record keeping requirements. The OBPR has agreed to this estimate of regulatory savings.