Working with horses is, most often, about the love of it. Those of us willing to dedicate our careers to the wonderful animals aren’t necessarily in it for the money.
But what does it take to support yourself while working with horses? How difficult is it to work in the equestrian industry?
A few points always come up:
- Working with horses requires long hours.
- Working with horses can be hard work.
But anybody who is passionate about horse work knows this. In fact, it’s part of the reason the equestrian industry is so attractive. Spending all day throwing yourself whole-heartedly into good, hard work is a great thing to do.
So let’s look at some of the different professions, how they make their money, how they’re involved with horses and what it takes to get there.
A farrier, as most of you will know, shoes horses. This can be a lot of work and can be quite difficult, but if you are confident you can build up a solid client base after you’ve become qualified, it can be a very solid profession.
Income: Average $42K per year. Range from 30K to 68K.
Professional Eventer –
Trying to make a living off prize money is very, very difficult, particularly for those in Australia. The Adelaide International is the biggest of such events, and has a total prize pool of only $120,000 (spread across all events).
To double the difficulty of making money this way, transporting, training and keeping horses costs a lot of money. Eventing is usually supported by teaching classes, training horses or other side professions.
Income: Some events in America (such as the Kentucky events) can earn an eventer 70 – 80,000. But that’s for first place.
The prize money for horse racing is a lot richer – and the industry is much healthier in Australia. The Melbourne cup is not only a popular Australian event, but is large by world standards.
An important thing to remember is that winnings are split up between a lot of people, including investors, and the jockey may only be paid an agreed wage.
Income: Winning the Melbourne cup earns $3.6 million.
Trainers prepare horses for events. Respected trainers have usually proven themselves with a strong performance record.
Income: Approximately $43,000 per year.
Equine Veterinarian –
Equestrian vets are specialized and go through large amount of study and qualification. Because of this, they can earn relatively high salaries but require at least 4 years of study.
Income: Average $62K up to $89K per year for senior vets.
Mounted police officer –
Mounted police officer positions are relatively limited but offer a very stable way for people to move into a profession that involved working with horses very closely.
A mounted police officer has a primary horse for which they are responsible, but also does general stable maintenance work as well. Being in the police force, it can involve relatively interesting and intense work, as well as allowing opportunities to meet new people and expand your life experience.
Income: During training, you’ll receive an income of $45K, which then goes up to $62K.
Equine Dentist –
Similar to a vet, this requires about 4 years of study and involves specialising to horse dentistry after a broader study of veterinarian science.
Income: $42K per year.
Immediate tax deductions for fodder storage assets
Primary producers may be able to immediately deduct (rather than depreciate over three years) the cost of fodder storage assets, such as silos and hay sheds used to store grain and other animal feed, making it easier for them to invest in and stockpile fodder. Primary producers who store fodder for sale may also be entitled to this deduction.
This measure is available for fodder storage assets first used or installed ready for use on or after 19 August 2018.
’Immediate’ or ‘instant’ doesn’t mean you get cash back from the tax office straight away, it means that you can reduce your taxable income, and your tax payable, in the financial year that they were bought and installed. Business.gov.au explains that ‘immediate’ or ‘instant’ write-off is also called accelerated depreciation or instant depreciation.
Fodder Storage Asset
A fodder storage asset is an asset that is primarily and principally for the purpose of storing fodder.
A fodder storage asset is also a structural improvement, a repair of a capital nature, or an alteration, addition or extension, to an asset or structural improvement, that is primarily and principally for the purpose of storing fodder.
Fodder refers to food for livestock, such as grain, hay or silage. It can include liquid feed and supplements, or any feed that could fit into the ordinary meaning of fodder.
‘Primarily and principally’ Test
For a fodder storage asset to satisfy the ‘primarily and principally for the purpose of’ test, its main purpose must be to store fodder.
For example, a shed that is originally built for the purpose of storing hay but is occasionally used to store a neighbour’s tractor that is borrowed twice a year may still meet the ‘primarily and principally’ test. This is because its main purpose is to store fodder. Occasionally storing the neighbour’s tractor is insufficient to displace the shed’s purpose as primarily and principally to store fodder.
However, if a cotton farmer purchases a silo which is used to store seed not intended for animal consumption, the silo does not meet the ‘primarily and principally’ test. This is because the main purpose of the silo is not to store fodder.
Similarly, if a grain farmer purchases a silo to store harvest that is designed for human consumption, the silo does not meet the ‘primarily and principally’ test. This is the case even if the whole harvest is ultimately used to feed livestock.
On the other hand, if a grain farmer grows feed grain and stores it in a silo for sale to livestock producers, the silo meets the ‘primarily and principally’ test because the main purpose of the silo is to store fodder.
Where an expense is incurred for several purposes, the ‘primarily and principally’ test requires an examination of the primary and principal function of what is produced by incurring the expense.
For example, a shed that is originally built for the purpose of storing a tractor but is, in practice, mainly used to store hay may still meet the ‘primarily and principally’ test. This is because its main purpose is to store fodder.
For dual purpose assets with integrated but separate functions, the primary and principal purpose of the asset must be to store fodder. For example, if an asset is used for both storing fodder and feeding animals, the animal-feeding component must be merely incidental to the asset’s primary and principal purpose of storing fodder. It will not meet the requirements of a fodder storage asset if its primary and principal purpose is for feeding animals.
Typical fodder storage assets
Typical examples of fodder storage assets include:
- liquid feed supplement storage tanks
- bins for storing dried grain
- hay sheds
- grain storage sheds
- above-ground bunkers.
For more information and updates please contact the Australian Taxation Office.
Please Note: Information provided in this article is of a general nature. It does not take into account your personal financial circumstances. Tailored professional advice should be sought before acting on any of the information contained.
Steel Structure Design
Building a steel structure is an excellent project to embark on – one that will return your investment and lifelong value to your property.
Building with steel is all about ensuring that your project fits your needs. That’s why we’ve outlined 8 major industries.
Take a look through the galleries below to see which industry is most likely to suit your needs, download a brochure and request a quote. Let’s get your project moving ahead.
Rural & farm buildings. Download the brochure here.
Equestrian buildings, indoors & stables complexes. Download the brochure here.
Commercial buildings, floor space & offices. Download the brochure here.
Industrial buildings & factories. Download the brochure here.
Custom-designed buildings & unique projects. Download the brochure here.
Ball court & playground covers. Download the brochure here.
Aeroplane & helicopter hangars. Download the brochure here.
Domestic & backyard sheds. Download the brochure here.