Accountants for Farmers.

Farm income is seasonal, but expenses are continuous. You might sell grain once a year, turn off livestock twice annually, or receive monthly dairy payments. Meanwhile, feed costs, fuel, maintenance, rates, insurance, and loan repayments don’t wait for income to arrive. The gap between spending and receiving creates cash flow stress, especially after poor seasons when income falls but costs don’t.

Walker Hill builds cash flow forecasts specific to your enterprise mix, seasonal patterns, and payment cycles. We identify when cash will be tight, advise on maintaining working capital reserves, help you plan major purchases for when cash is available, and structure FMD strategies that support cash flow management alongside tax benefits. You’ll know your cash position throughout the year, not discover too late that you can’t meet commitments.

Primary producers can access tax concessions worth thousands annually, but many farmers miss them through lack of awareness or incorrect claiming. Income averaging might not be used when it would save tax. FMDs might not be maximised. Fuel tax credits might be under-claimed. Capital allowances for fencing and water might be treated as capital when they’re immediately deductible. Land care expenses might not be claimed at all.

Walker Hill ensures you claim every concession you’re entitled to. We calculate whether income averaging benefits you each year. We advise on optimal FMD deposits based on your income and tax position. We track fuel purchases and claim full fuel tax credits. We identify capital allowances you can claim immediately rather than depreciating over years. You’ll access all the tax benefits designed for primary producers.

FMDs are powerful tax tools, letting you defer income from profitable years to loss years. However, rules around deposits, withdrawals, and claiming deductions aren’t straightforward. You can only deposit if your taxable income is under $100,000. Withdrawals must stay in for at least 12 months (except in drought). Deposits reduce taxable income, withdrawals increase it. Poor FMD strategy creates more tax problems than it solves.

Walker Hill manages your FMD strategy based on your multi-year income projections. We advise when to deposit (profitable years), when to withdraw (loss years or major purchases), how much to deposit to optimise tax outcomes, and how FMDs interact with income averaging. Your FMDs become a tax planning tool, not just a place to park money.

Transitioning the farm to the next generation triggers capital gains tax on decades of land value growth. Without planning, CGT can consume 23-47% of the gain, forcing asset sales to pay tax bills. However, small business CGT concessions can reduce or eliminate the tax if structured correctly. The 15-year exemption is particularly valuable, but you must meet eligibility tests around ownership, use, and retirement.

Walker Hill plans succession years before you intend to transition. We ensure you’re eligible for maximum CGT concessions, structure the transition to access exemptions, coordinate with legal advisors on documentation, and model different transition pathways to minimise tax. We also advise on financing transitions so the incoming generation can afford to take over without the exiting generation sacrificing retirement security.

Drought forces decisions that affect tax. Selling livestock early means income concentrates in one year. Buying feed increases expenses but depletes cash. Taking off-farm work adds income that might push you into higher tax brackets. The ATO provides concessions for forced livestock sales and allows carry-back of losses, but you need to understand what applies and claim correctly.

Walker Hill advises on tax implications of drought decisions before you act. We model the tax outcomes of selling livestock versus agisting, help you access forced disposal concessions, advise on whether to use carry-back provisions, and plan around exceptional circumstances concessions. We also help you access any available government assistance programs that have financial documentation requirements.

Livestock can be trading stock or revenue assets depending on how you elect to treat them. The choice affects when you’re taxed on increases in value, how forced sales are treated, and what happens when you die. Natural increase livestock versus purchased livestock have different treatment. Bloodstock has special rules. Getting trading stock elections wrong creates problems you can’t easily fix later.

Walker Hill advises on optimal trading stock elections for your livestock operation, ensures elections are lodged correctly, manages the accounting for stock movements and valuations, and handles the tax implications when you sell, purchase, or are affected by events like drought that create exceptions to standard rules.

Transferring farm assets to the next generation requires valuations that satisfy both tax law and family fairness. Market value might be unaffordable for incoming farmers. Historic cost doesn’t reflect reality. Different family members might disagree on value. Valuations affect CGT calculations, stamp duty on transfers, and how you structure succession.

Walker Hill coordinates with rural valuers to obtain appropriate valuations, advises on whether market value or other bases apply for tax purposes, helps you understand how values affect succession options, and structures transitions that balance tax efficiency with family fairness. Accurate valuations support both your tax position and family decision-making.

Many farming families mix farm assets with personal assets, making it unclear what’s business and what’s personal. The family home might sit on farm title. Personal vehicles get used for farm work. Personal expenses run through farm accounts. This creates problems for tax, succession planning, asset protection, and when measuring farm profitability.

Walker Hill helps you separate farm business from personal assets properly. We establish what should be in business structures versus personal names, advise on separating the home from farm operations for succession purposes, implement accounting that tracks business separately from personal, and help you understand true farm profitability once personal expenses are excluded.