Under the Financial Provisions bill 2020, farmers who are normally assessed through income averaging have been allocated an additional step out for the 2020 tax year, even where the farmer has already stepped out of averaging within the previous 4 years.

Subject to the bill being passed, the new rules will allow a farmer who has made a loss in 2020 to get a second chance at opting out of averaging on a temporary basis. The tax saving achieved from taking this option must be paid back over the four succeeding years.