Primary Producers

Primary production businesses are the backbone of Australia’s economy, supplying essential food and resources both domestically and internationally. However, these businesses face unique and significant challenges, including fluctuating income due to natural disasters like floods, disease outbreaks affecting livestock, and export bans from key markets such as China. Despite these challenges, primary producers are some of the most hardworking and loyal individuals in Australia. Once they choose an accountant or service provider, they tend to stick with them, even if they are not receiving the right advice.

This loyalty, while admirable, can sometimes prevent primary producers from receiving the best possible financial guidance. For example, the Farm Management Deposit Scheme (FMDS) allows primary producers to deposit up to $800,000 into a dedicated account, offering a significant tax deduction. However, not all accountants are familiar with such schemes, and inexperienced advice could lead to missed opportunities for substantial tax savings.

Investax is dedicated to providing the right advice and solutions to primary production businesses, ensuring that they are well-equipped to handle the unique challenges of their industry.

How Investax Can Help

Income Fluctuations and Market Volatility

Primary production businesses face significant income fluctuations due to natural disasters, disease outbreaks, and market volatility, such as export bans. These events can severely impact financial stability and operational viability.

 Investax provides tailored cash flow management strategies and helps set up financial reserves, such as the Farm Management Deposit Scheme, to buffer against these fluctuations and stabilize your business income.

Investax also works with licensed financial planner to offer comprehensive risk management strategies, including insurance advice and financial planning, to mitigate the impact of livestock disease and market disruptions, ensuring your business remains resilient in the face of adversity.

Business Structure

Many primary producers establish their business structure without fully understanding the long-term tax and financial implications, especially during periods of income fluctuation.

Investax will evaluate and optimize your business structure to ensure it provides the best tax efficiency and protection against fluctuating income, tailored specifically to the primary production industry.

Asset Protection

Primary producers often have significant assets, including land, equipment, and livestock, that are vulnerable to risks such as legal disputes, creditors, and natural disasters.

Investax provides tailored asset protection strategies to safeguard your valuable assets from potential risks. This includes structuring your business and personal assets in a way that minimizes exposure to liabilities, ensuring that your wealth and property are protected.

Farm Management Deposit Scheme (FMDS)

The FMDS allows primary producers to deposit up to $800,000 and claim a tax deduction, providing a powerful tool for managing income fluctuations and tax liability.

Investax ensures you are fully informed about the FMDS and other relevant schemes, helping you maximize your tax benefits and secure your financial future.

Cost Management and Profitability

Primary production businesses often face high operating costs, including feed, equipment, and labour, which can strain profitability during lean years.

Investax conducts detailed financial analysis to identify cost-saving opportunities, improve operational efficiency, and boost your bottom line.

Asset Management and Depreciation

Agricultural equipment and infrastructure represent significant investments that need to be managed effectively for both accounting and tax purposes.

Investax helps track and manage these assets, ensuring proper depreciation and maximizing tax deductions.

Business Premises Purchase

Purchasing business premises involves significant financial considerations, as well as asset protection strategies.

Investax provides tailored solutions for primary producers looking to purchase business premises, ensuring that the acquisition is structured for optimal asset protection and tax efficiency.

Succession Planning and Exit Strategy

Planning for the future, whether it involves passing the farm to the next generation or selling the business, requires careful consideration of tax implications and family dynamics.

Investax provides tailored succession planning and exit strategies that minimize tax liability and ensure a smooth transition, protecting both your family’s legacy and financial interests.

Insurance and Risk Mitigation

Ensuring adequate insurance coverage for property, livestock, and business continuity is critical for protecting your primary production business.

Investax advises on the right insurance coverage to protect your business from unforeseen events and mitigate risks effectively.

Financial Reporting and Strategic Planning

Understanding financial performance and planning for future growth are essential for the long-term success of your primary production business.

 Investax prepares detailed financial reports and helps set up KPIs and dashboards to track performance, providing strategic advice to help your business grow and thrive.