Small farm as a business
Sorry if this has been covered before but I'm having trouble getting my head around it. I've been over the ATO website and it makes my brain hurt. I thought someone here might have some expreience with it.
I have 90 arrable acres and have a small lowline cattle heard that I intend to add to over the next 24 months. Currently I have 1 big 90 acre padock with a good dam. My plan is to devide the 90 acres into 5 padocks and build a small yard area with loading ramp cattle crush etc. also intend to update pasture condition as well as a bit of drought proofing.
I plan to breed and anually sell some cattle as well as a small amount of produce. Nothing huge as we work full time. I can't see myself reaching the requirements of becoming a primary producer for taxation pourposes. However I'm sure the Tax man will have his hand out for taxes from any aditional income I recieve from the sale of produce or direct sale of cattle. From reading the ATO website as I have a lifestile property I can't offset the cost of fencing, water supply, equipment etc etc as it's considered part of the lifestyle. This makes no sense to me, even though not a primary producer I'm still selling a product and that product comes at a cost.
So my question is can I run a small property as a small business and offset costs against income for a total profit without being a designated primary producer. In effect just run it like any other small business. I figure if I need a water trough to get water to the cattle I should be able to deduct the cost from profit from sale of the cattle.