Our Agribusiness framework includes knowledge sharing across a national team who are passionate about delivering solutions. Please see below three recent headline news stories and what they mean for the agribusiness industry.
For registered businesses employing working holiday makers, foreign workers will now pay 15% in income tax from their first dollar of wages up to $37,000 p.a., with the normal foreign resident tax rates to apply from $37,001. The ATO requires all businesses employing or planning to employ working holiday makers to have registered by 31 January 2017 (a form and tax table are available on the ATO website). If businesses do not register, employers will need to withhold 32.5% of income paid to foreign workers up to $87,000. The ATO intends to increase regulation and monitoring of taxation relating to foreign workers, with penalties to apply to employers. These changes are expected to impact seasonal farmers, particularly horticultural farmers, who rely on generally low labour rates payable to working backpackers to manage harvest costs.
Submissions to the Murray-Darling Basin Authority for amendments to the Murray Darling Basin Plan closed on 10 February 2017. The proposed amendments include a reduction to the water recovery target for the Northern Basin from 390 GL to 320 GL. Farmers are still concerned that the reduction target remains too high for their irrigation needs and will continue to impact the viability of agribusinesses and communities in South Western Qld communities.
The implementation of the Qld Government’s mandated ethanol fuel laws in January 2017 has seen increased demand for grain and corresponding prices for grain feedstock have increased; domestic sorghum prices increased by 5.9% to AUD$232/t in the December 2016 quarter (ABARES, 2017). The availability and price for feedstock generally impacts margins for cattle feed-lotting and other intensive animal husbandry businesses. Appropriate hedging strategies and management of working capital can minimise the impacts and risks to businesses in these areas.
Want to know more?
For more information please contact our Agribusiness team.
Jamie Harris, Partner
National Agribusiness Leader
T +61 7 3333 9820
M +61 418 984 694
Jason Pietzner, Director
National Agribusiness Director
T +61 7 3333 9842
M +61 403 300 471