EOFY Tax Tips for Farmers 2026 - Whistler Farm Supplies

As the end of the financial year approaches on June 30, Australian farmers have a valuable opportunity to review their financial position and implement smart tax planning strategies. Farming income can fluctuate due to seasonal conditions, commodity prices, and input costs, so taking a proactive approach to tax can make a meaningful difference to cash flow and long-term profitability. Planning ahead also ensures you’re not rushing decisions in late June when options become limited.

One of the key areas to consider is timing. Bringing forward deductible expenses—such as fertiliser, fuel, repairs, and farm supplies—before June 30 can reduce taxable income for the current year. Likewise, deferring income (where appropriate and legitimate) into the next financial year may help smooth out tax liabilities. Farmers should also review asset purchases, as the instant asset write-off scheme may allow eligible equipment, fencing infrastructure, and tools to be immediately deducted rather than depreciated over time.

It’s also important to consider broader strategies such as farm management deposits (FMDs), which allow primary producers to set aside pre-tax income in good years and withdraw it in lower-income years. Superannuation contributions, trust distributions, and reviewing business structures (sole trader vs company vs trust) can also play a role in optimising tax outcomes. Working closely with an accountant who understands agriculture is critical to ensure compliance while maximising available benefits.

Helpful EOFY Resources for Farmers

ATO – Tax for primary producers

ATO – Instant Asset Write-off

ATO – Farm Management Deposits Scheme

Business.gov.au – EOFY tax checklist

Frequently Asked Questions

What expenses can farmers claim before June 30?

Farmers can typically claim operating expenses such as seed, fertiliser, livestock feed, fuel, repairs and maintenance, insurance, and farm supplies. Prepaying some expenses may also be deductible, depending on eligibility.

Should I buy equipment before EOFY to reduce tax?

It can make sense if the purchase is genuinely needed. Under the instant asset write-off, eligible assets may be immediately deductible—but avoid buying purely for tax reasons without considering cash flow.

What are Farm Management Deposits (FMDs)?

FMDs allow farmers to defer tax by depositing income in profitable years and withdrawing it in leaner years, helping to smooth income and manage tax obligations over time.

Do I need to see an accountant before June 30?

Yes—early planning gives you more options. An accountant can help tailor strategies like income timing, deductions, and structuring decisions to your specific farm situation.

Can I prepay farm supplies like fencing before June 30?

Yes—many farmers choose to prepay essential farm supplies such as electric fencing, insulators, reels, and other inputs before June 30 to bring forward deductions into the current financial year. This can help reduce taxable income while also preparing your property for the next season. Just make sure the purchase is genuinely required for your operation and check with your accountant to confirm eligibility under prepayment rules.