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  • Landcare and water facility tax offset

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    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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    The landcare and water facility tax offset is a 30 cents in the dollar tax offset. It can be claimed instead of a deduction for up to $5000 of eligible expenditure on landcare operations and for up to $5000 of eligible expenditure on facilities to conserve or convey water. Expenditure on landcare can be claimed as a tax offset in the year incurred. Expenditure on facilities to conserve or convey water can be claimed as a tax offset over 3 years

    To be entitled to claim this tax offset you must:

    • be a primary producer or
    • for the purposes of the landcare operations part of the tax offset be carrying on a business using rural land-other than a business of mining or quarrying-and
    • have taxable income of $20 000 or less after you notionally deduct the amount that you would have claimed for eligible expenditure if you had chosen to claim the deduction instead of the tax offset. Only primary producers are entitled to claim the water facility part of this tax offset.

    Note: The tax offset is available for expenditure incurred between 1 July 1997 and 30 June 2001. The tax offset is a carry-forward, non-refundable tax offset. This means you can carry forward indefinitely any excess tax offset, after tax liabilities are met, to use against future income tax liabilities.

    Last modified: 28 Oct 2003QC 27383