The New South Wales peak farming group, NSW Farmers Association, says there is a clear opportunity for the Federal Government to assist businesses in transitioning to cleaner cars.
NSW Farmers Business, Economics and Trade Committee chair John Lowe suggested using a targeted extension of the instant asset write-off to encourage farmers and other owners of rural businesses to invest in more up-to-date, energy-efficient machinery.
“Farmers have a lot of expensive equipment with long lifespans that they use to produce food and fibre. If the federal government wants them to adopt low-emissions technology, they should be incentivising them to upgrade by providing accelerated depreciation, or targeted instant asset write-offs,” Lowe said.
Lowe also highlighted the need to ensure such schemes are practical and affordable, designed with industry to guarantee maximum environmental and productive business benefits.
Without an existing alternative to diesel for food and fibre production, according to him, Australia needed to ensure the transition was orderly.
“I know there are some who want to scrap the fuel excise tax credit off-road use, but at the moment there are no economically-viable options for electric tractors or hydrogen-powered utes. With everyone feeling the pinch at the moment, the last thing we need are policies that drive up the cost of production and leave everyone worse off,” he explained.
Lowe said that replacing older, less-efficient agricultural vehicles with more modern ones was not only sensible but would also be an excellent policy moving ahead. He urged the government to collaborate with farmers to create workable, inexpensive solutions.
“Farmers tell us they’re keen to do their bit in adopting new technologies, but until they’re available we need to find ways to reduce pollution without reducing our ability to feed ourselves,” he stated.
