A number of tax concessions are available to livestock producers experiencing drought. These concessions generally defer tax liabilities to later years. This can be particularly important for livestock producers who are faced with a situation of increased costs in handling the drought, and limited funds for drought recovery.

Farmers can apply for these concessions when their area has been officially 'drought declared'. This Primefact covers:

• options for declaring income from forced livestock sales;
• how livestock trading profits are calculated;
• method used in calculating taxable profit;
• effect of high replacement costs on future tax liabilities.