RURAL Business Support is urging farmers to carefully consider capital purchases they may be looking at in the wake of last week's budget.
There were a number of key measures announced, including an instant asset write-off of $20,000, which has previously been $1000.
This applies straight away, meaning assets costing up to $20,000 can be claimed as an immediate tax deduction.
This will not only benefit the small business buying the asset but boost sales.
Farmers will also receive immediate deductions from July 1, 2016, for investment in dams, tanks, bores and new fencing.
Primary producers will be able to write-off feed and fodder storage, such as hay sheds, across three years, supporting drought preparation.
RBS chairperson Sharon Starick is urging farmers to consider their strategic plans when making purchases on the back of the tax deductions announced in the budget.
"With the announcement of the $20,000 for accelerated small business depreciation, RBS would strongly encourage primary producers or growers looking to utilise that to make sure it fits within their strategic plan," Mrs Starick said.
"Farmers really need to look at whether it's a strategic purchase and to ensure that they can afford to make the purchase."
Mrs Starick said there had been a reduction in funding for rural financial counselling services in the budget, but she had yet to see the details.
"I believe there has been a slight reduction but that has come about because of the ceasing of a program which financed farm finance support officers," she said.
"In terms of the service, our clients should not see a change."
Despite recent rains and higher commodity prices, Mrs Starick said there was still a strong demand for rural financial counselling.
"We are providing a much-needed service," she said.
"We are seeing increasing workloads coming from certain parts of the state where growers and producers are under pressure."