Landcare and water facility tax offset

Warning:

This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

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Before the end of the 2000–01 income year, if you could deduct amounts for capital expenditure on landcare operations see Landcare operations or water facilities see Water facilities you could choose a tax offset of 30%, instead of a deduction, for up to $5,000 of your expenditure on each of these things.

The tax offset is not available for expenditure incurred after the end of the 2000–01 income year.

As the tax offset for expenditure on landcare operations was able to be claimed in the year you incurred the expenditure, the offset is not available for the 2002–03 income year.

The tax offset for expenditure on water facilities is based on one-third of the expenditure in the year it was incurred and in each of the next two years. This means that if you chose the tax offset for expenditure you incurred in the 2000–01 income year, the tax offset is still able to be claimed for the 2002–03 income year. To choose the tax offset, your taxable income for the 2000–01 income year must have been $20,000 or less after notionally deducting the amount that you would have claimed for water facilities had you not chosen the tax offset.

Note: Any landcare and water facility tax offset that you cannot use in this income year can be carried forward to a later income year and may reduce the income tax that you would otherwise have to pay in that later income year. Before you apply the tax offset in a later income year, you must apply it to reduce certain amounts of net exempt income.