Farmhouse expenditure deductibility


For farming clients who prepare your own GST returns, please be aware that new rules apply for the 2018 year:

Introduction of Type 1 and Type 2 farms:

  • Farming businesses where the value of the farmhouse (including curtilage and improvements) is 20 percent or less of the total value of the farm (Type 1 farms); in essence this means your claim for GST purposes is now 20 percent not 25 percent
  • Farming businesses where the value of the farmhouse (including curtilage and improvements) is more than 20 percent of the total value of the farm (Type 2 farms); means your claim for GST purposes will be less than 20 percent
  • Deductibility of expenditure is now based on the business use of the farm property.

Farmers who operate their business from home may claim 50 percent of their telephone rental charges, unless they can show that the actual business use of the telephone is greater than 50 percent. This is the existing practice for other home-based businesses.

Get in touch with us today if you’d like to discuss.

Published May 2017

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