Why Rental Property Owners Should Act on Solar Rebates

The Solar Victoria rental-property rebate lets eligible landlords receive up to $1,400 per property for installing solar-PV systems at up to two rental properties each financial year — and you also have the option of an interest-free loan matching the rebate, reducing upfront costs significantly. 

To qualify:

• Your renters’ combined household taxable income must be under $210,000. 
• The property value must be under $3 million and must not have previously received a solar-PV rebate under the program. 
• You must sign a formal Rental Provider-Renter Agreement allowing installation and access. 
• Installations must be via an authorised solar retailer, and using only eligible products. 

The process involves: obtaining quotes, signing the agreement with the tenant, verifying eligibility, installing the system within specified timeframes, and then your rebate is applied directly to the retailer invoice.

You and your tenant also have the flexibility of a co-contribution model where the tenant may cover up to 50 % of the interest-free loan monthly repayments (e.g., ~$14.58/month) or you can cover the full repayment yourself. 

Once installed and connected to the grid, the system may lower your tenant’s energy bills and increase property appeal, while you enjoy a cleaner asset and governmental support reducing your capital burden. Make sure you still check feed-in tariffs and ensure your retailer handles the grid connection correctly. 

For further information please click this link:
https://www.solar.vic.gov.au/solar-rebates-rental-properties

In recent months, we’ve seen a significant increase in audit activity from the Australian Taxation Office (ATO) and other government agencies. With compliance reviews and audits becoming more frequent and detailed, now more than ever, it’s important to ensure you’re protected against the potential costs involved.

That’s why we’re highly recommending that all our clients consider taking out Audit Shield Insurance.

Audit Shield Insurance provides peace of mind by covering the professional fees that may arise if your business or personal tax affairs are subjected to an audit, enquiry, investigation, or review. These processes can be time consuming and costly even if your records are completely accurate and up to date.

Given the increased focus on data matching, targeted industry reviews, and stricter compliance measures, the likelihood of being audited has risen significantly this year. Audit Shield ensures that should this occur, you won’t be left with unexpected expenses for the time and work required to manage the audit on your behalf.

If you haven’t already taken out Audit Shield Insurance, we strongly encourage you to do so. It’s a small investment for significant peace of mind and financial protection. Please note that reminders regarding Audit Shield Insurance will be sent out again within the next couple of weeks, so keep an eye out for further communication.

For more information or to arrange cover, please contact our office — we’ll be happy to guide you through the process.

Farm Management Deposits: A Smart Tool for Income Smoothing and Tax Planning

Australia’s primary producers know that farming income rarely stays steady. Droughts, floods, commodity prices, and market shifts can all lead to large swings from one year to the next.
The Farm Management Deposit (FMD) scheme is a powerful tool that helps smooth out those ups and downs — both for tax and Centrelink purposes.

What Is a Farm Management Deposit (FMD)?

An FMD allows eligible primary producers to set aside pre-tax income in good years and withdraw it in low-income years.
The amount you deposit becomes a tax deduction in the year of deposit, and the amount you withdraw is included in your taxable income when it’s taken out.

This makes FMDs a valuable tool to:

• Reduce tax in strong years,
• Boost cash flow in lean years, and
• Smooth income for Centrelink benefits like Youth Allowance or Farm Household Allowance.

Key Rules and Eligibility

Who can use FMDs:
Only individuals carrying on a primary production business in Australia are eligible. (Companies, trusts, and partnerships themselves cannot hold FMDs, but individual partners can.)

Deposit limits:
Up to $800,000 per person (as at 2025).

Deposit conditions:

• Must be made from primary production income.
• Minimum deposit $1,000.
• Must be held for at least 12 months to retain the tax deduction (unless withdrawn due to exceptional circumstances such as drought or disaster).

Withdrawals:
Amounts withdrawn are assessable income in the year of withdrawal.

Example: How FMDs Smooth Income and Tax

Outcome: Income and tax obligations are stabilised across years — helping manage both taxation and Centrelink assessments more effectively.

Why FMDs Matter Beyond Tax

Centrelink assesses taxable income when determining eligibility for benefits like Youth Allowance, Family Tax Benefit, or Farm Household Allowance.

By strategically using FMDs, farmers can:

• Lower taxable income in a strong year, keeping within eligibility thresholds.
• Manage the impact of fluctuating profits on family benefits.
• Support youth allowance eligibility for children studying away from home.

Adjusted Income Options for Farming Families with Children on Youth Allowance

Many farming families across Australia face the same challenge each year — fluctuating farm profits. When weather conditions, commodity prices or market forces swing, so does income. Unfortunately, this volatility can distort how Centrelink assesses eligibility for Youth Allowance, potentially disadvantaging rural families with children studying or training.

The Problem: One Good Year Can Skew Eligibility

Youth Allowance is income and asset-tested, with parental income thresholds typically around $60,000–$70,000 for full payment (as at 2024–25).
However, Centrelink bases its decision on taxable income from the most recent tax return.

For farming businesses, that snapshot often fails to reflect long-term financial reality. A single strong income year — for example, after a drought breaks — may make the family appear ineligible, even if cash reserves are low due to debt repayment, reinvestment, or seasonal expenses.

The Solution: Adjusted Income (Actual Means Test)

Centrelink recognises that primary producers’ taxable income can fluctuate dramatically from year to year.
Through the Actual Means Test (AMT), families can request an Adjusted Taxable Income Assessment.

This allows Centrelink to consider income over multiple years, offering a more accurate reflection of financial capacity.

To apply, families need to:

• Request a reassessment under Centrelink’s fluctuating income provisions.
• Provide at least three years of farm financials, including tax returns and BAS.
• Supply evidence such as Farm Management Deposit (FMD) details and explanations for exceptional income events (e.g. drought relief or one-off asset sales).

Example:
If farm income over three years is $15,000, $120,000 and $60,000, the average ($65,000) may fall within Youth Allowance thresholds — restoring eligibility that would otherwise be lost due to one strong season.

Ongoing drought conditions are causing a critical fodder shortage in Victoria. The Victorian Government has introduced a free, streamlined permit service and drought freight network to support farmers importing fodder from other states while protecting the state from biosecurity threats.

Key Measures:

• Victorian Drought Freight Network:

  • Allows loads of up to 84 tonnes on key freight routes in southwest Victoria.

  • Aims to ease bulk transport to central pick-up points for farmers.

  • Developed with Department of Transport and Planning, Victorian Farmers Federation, and Livestock and Rural Transport Association of Victoria.

• Permit Requirements:

  • NT & Tasmania: No permit required.

  • QLD & NSW (RIFA zones): Must source outside pest zones or obtain plant health certificate + apply for Plant Biosecurity Permit (PBP).

  • WA: Similar requirements for green snail zones.

  • SA & NSW (non-risk zones): No extra permit needed if sourced outside pest zones.

  • Application assessed within 2 working days; permit and inspection are free.

• Pests of Concern:

  • Annual ryegrass toxicity (QLD, WA, SA, NSW)

  • Green snail (WA)

  • Red imported fire ant, electric ant (QLD, some NSW)

• Biosecurity Tips:

  • Source from reputable suppliers.

  • Feed out in confined areas to limit spread of weeds.

  • Monitor feed-out sites and control weeds early.

  • Use commodity vendor declarations to ensure fodder safety.

Application Process:

Fill out the PBP form.

Email to market.access@agriculture.vic.gov.au.

Agriculture Victoria will respond within 2 business days.

Permit and conditions will be issued if requirements are met.

For further assistance, call 136 186 or email market.access@agriculture.vic.gov.au.