Machinery suppliers urge buyers to use tax break before price hike

Leading farm machinery manufacturers and equipment suppliers have urged buyers to take advantage of the instant asset write off tax break before prices increase on imported tractors and implements.

On the rise: Sean McGuane, director of the Rhys Evans dealership at Colac, has seen a lift in machinery sales. Picture: Dannika Bonser

TRACTOR and machinery prices are set to rise by up to 15 per cent, driven by a diving Aussie dollar and a higher tax break for farmers.

Leading farm machinery manufacturers and equipment suppliers are now urging buyers to take advantage of the Federal Government’s increased instant asset write-off tax break before prices increase on imported tractors and implements.

The IAWO increased from $30,000 to $150,000 until June 30 as part of the Government’s coronavirus stimulus incentives.

Ararat-based Gason said it had also recruited more staff and increased production for the expected demand on the back of the IAWO and good recent rain.

Gason’s marketing and quality assurance manager Craig Lennie said considerable rain across most cropping districts and attractive commodity prices had spurred its decision-making.

“We haven’t experienced a slowdown in demand for our machinery,” Mr Lennie said.

“In fact, we have rescheduled our factory operations for maximum productivity and also recruited extra, experienced tradespeople to help cater for demand, with some further employment opportunities on offer.”

Inlon’s managing director Jim Jardim said anyone in the market for machinery should buy now before prices rise by up to 15 per cent because of the poor exchange rate affecting future imported goods.

“Imported tractors and machinery currently in Australia will be at their best cost for the next two to three years,” Mr Jardim said.

“Buyers need to act quickly to take advantage of this existing stock because replacements will increase by 10-15 per cent.”

Sean McGuane, director of Colac-based dealership Rhys Evans, said the local dairy region was fortunate to have consistent rainfall to grow fodder instead of farmers in the area needing to buy feed, and freeing up cash at an opportune time.

“We had a fantastic spring, we had a mild summer, and we are now coming into the best autumn break in decades,” Mr McGuane said.

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“There goes that uncertainty about (buying) hay and fodder, so they (farmers) start to look at machinery and what they could upgrade and take advantage of an unprecedented tax write off.”

Mr McGuane said when the threshold was at $30,000 farmers were upgrading implements, but “now it’s large ticket items” prompting the dealership to increase its stocks of larger implements and tractors.

The Tractor Machinery Association of Australia last week reported Victoria continued to enjoy a bumper year, with sales in March up 32 per cent on the same month last year.