Agriculture & Primary Production
Accounting for Primary Producers Who Know Their Land Better Than Their Ledger
Income averaging, farm management deposits, primary producer tax concessions and BAS — handled by an accountant who understands agriculture.
Primary producers in NSW face unique tax concessions and accounting obligations — income averaging to smooth volatile incomes, farm management deposits, livestock valuation methods, and primary producer GST concessions. ANH Accounting works with farmers, horticulturalists, and agribusinesses across NSW.
The accounting challenges agriculture & primary production face
We have seen these issues repeatedly — and know exactly how to resolve them.
Variable income and income averaging
Agricultural income fluctuates significantly with seasons, commodity prices and weather. The ATO's income averaging provisions allow primary producers to smooth their tax liability across years, significantly reducing tax in high-income years.
Farm management deposits
Farm management deposits (FMDs) allow primary producers to set aside pre-tax income in good years to draw on in lean years. Used correctly, FMDs are a powerful tax and cash flow management tool.
Livestock and crop valuations
The election to use the cost or market selling value method for livestock can significantly affect your taxable income. Opening and closing stock valuations must be correctly determined each year.
Primary producer GST concessions
Primary producers have specific GST concessions, including the ability to account for GST on a cash basis and access to certain GST-free supply rules for agricultural products.
What we do for agriculture & primary production
- Annual tax returns with income averaging
- Farm management deposit planning
- BAS preparation & lodgment
- Livestock and crop accounting
- Business structure advice
- ATO correspondence
- Xero bookkeeping
- Cash flow planning for seasonal income
What you can expect
Income averaging applied to minimise tax in high-income years
Farm management deposits used strategically for cash flow and tax
Livestock valuations correctly determined each year
All primary producer concessions and deductions captured
Why agriculture & primary production choose ANH Accounting
Start with a free 30-minute session
We review your situation, identify savings opportunities, and outline exactly what we can do for your agriculture & primary production business — no charge, no obligation.
After hours & weekend appointments available
Common questions from agriculture & primary production
What is income averaging for primary producers?
Income averaging is an ATO provision that allows primary producers to pay tax based on their average income over the last five years rather than their income in the current year alone. This significantly reduces tax in years of unusually high income — such as when livestock prices spike or a bumper crop is sold. You make an irrevocable election to average, and the averaging applies each year from then on. We model whether averaging is beneficial for your situation before you elect.
What are farm management deposits and how do they work?
Farm management deposits (FMDs) allow primary producers to deposit pre-tax income into an approved FMD product and claim a deduction in the year of deposit. The deposit is included in assessable income when withdrawn. This allows you to reduce your tax in high-income years and draw on the funds — and pay tax on them — in lower-income years. Deposits must be held for a minimum of 12 months (with some exceptions for drought and natural disasters). There are limits on the total FMD balance and the amount you can deposit in a year.
What GST concessions are available to primary producers?
Primary producers can elect to account for GST on a cash basis, which means you account for GST when you receive or make payment rather than when you invoice. This is beneficial for businesses that give or receive extended credit terms. Certain agricultural sales may also be GST-free under specific provisions of the GST Act. We review your business activities and ensure all applicable concessions are applied.
Ready to get your accounting handled properly?
Book a free 30-minute session with ANH Accounting. We'll review your current situation, find opportunities, and tell you exactly what we can do for your agriculture & primary production business.
Registered Tax Agent RN 26258346 · IPA · IFA · CPA · CA · Xero Certified · Est. 2018