Both major parties have committed to extending the instant asset write-off for equipment purchased for business use, albeit with differing value limits.
The trade tariffs announced by United States President Trump are also impacting global sales.
These were the views of machinery and equipment stockists at Farm World, held at Victoria’s Lardner Park in late March.
Matt Peeler, representing European machinery manufacturer Kuhn, and Shane Marshall, of TTMI Maffra, were sharing an exhibitor site at Farm World.
They spoke to Dairy News Australia about current issues affecting sales.
Recently, the Federal Labor Government announced potential further extension to the instant asset write-off policy.
In 2024, the Labor Government committed to a one-year extension (to June 30, 2025) on the $20,000 instant asset write-off for small and medium businesses, including farm businesses.
According to the Australian Tax Office, the $20,000 limit applies on a per asset basis, so small businesses can instantly write off multiple assets.
The ATO advises that businesses can also acquire a pool of assets valued up to $20,000 that can be depreciated quicker and over fewer years than more expensive assets.
In its recent pre-election promises, the Labor Government has committed to extending this program for another year if it is re-elected.
The Liberal party, in its pre-election promises, has committed to a potential permanent $30,000 asset write-off program.
Any extension to the instant asset write-off program will be a boon to businesses along the supply chain, although most farm machinery costs more than $20,000.
Farmers, like many business owners, were waiting first for the announcement of the federal election date, then for the outcome.
Those issues, along with a growing uncertain global market for Australian product, have affected purchasing decisions in the first few months of 2025.
“Machinery and equipment sales were really good up until Christmas, but then it’s backed off,” Shane Marshall said.
“Everyone is waiting for the election date before they make decisions for their business.”
Shane said livestock producers were also waiting to see any effects of potential changes to the live animal export market.
Matt Peeler said manufacturers were waiting for the election result and for government policies to stabilise post-election, because the global markets were unstable.
Matt said increasing export tariffs for countries into the US, designed to boost manufacturing within the US, were having a flow on effect to global markets.
“As a European manufacturer, the increased export tariff into the US and into Canada, is affecting Kuhn and other companies,” Matt said.
“For Kuhn, the North American dealer network are family dealerships. They supply equipment and machinery into Canada, and those businesses are being affected negatively by the new US tariffs.”
Matt said that European manufacturers, unable to sell into the US farming market, are looking for other places to export their product.
Australian farmers, part of the expanding Australasian farming sector, may benefit from greater competition for market placement from these manufacturers.
Matt said the North American dealerships realise they will have long wait times for equipment and machinery manufacturers within the US to scale up their businesses.
The supply chain flow-on effect will have wide ramifications for farmers and suppliers and, at the other end, consumers.
“Anyone who manufactures product in Europe and sells into America is being affected,” Matt said.
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