AN increase in the federal government's instant asset write off scheme has filled local machinery dealers with confidence of increased sales in the coming months.
Announced as part of the federal budget earlier this month, farmers will be able to write off on new equipment valued up to $150,000 until the end of the year.
The move was designed to stimulate the country's COVID-19 economic recovery and is an increase on the government's existing $20,000 write-off program.
Tamworth Auto Motor Garage's Andrew Kings said dealers had already begun to see the benefits of the increase.
"For us, it hasn't made too big of a difference because most of our products fit into the previous write-off limit," Mr Kings said.
"However, I'm hearing from a lot of other people that farmers particularly are looking to take advantage of it.
"I think it has certainly benefited our business since it was introduced a couple of years back and I think even more businesses will benefit from it now, which is great.
"In my opinion, companies that sell bigger pieces of equipment will probably benefit more, but we will just have to wait and see."
Mr Kings said the scheme had come "at the perfect time" as most farmers prepare for a predicted bumper harvest.
"We have seen it already that people are preemptively buying things like buggies from us, because they are expecting a good harvest," he said.
"Having that confidence, and now this little bit of extra incentive, should really help bring in sales for local businesses.
"I know we are having trouble keeping enough stock on hand to meet the demand and I'm confident plenty of others in a similar boat."
Assets can be new or second hand, and must be purchased, or installed, by December 31.
The expanded instant asset write-off took effect in March and applies to businesses with annual turnovers of up to $500 million, up from $50 million.