Explanatory Memorandum
(Circulated by authority of the Treasurer, the Hon Peter Costello MP)General outline and financial impact
Landcare and water facility rebate (tax offset)
Amends the income tax law to provide a rebate (tax offset) as an alternative to deductions for expenditure on landcare works and water conserving and conveying facilities. These expenditures are incurred by primary producers or certain rural landholders.
Date of effect: These measures will apply in relation to expenditure incurred on landcare or water facilities from the start of the 1997-98 income year.
Proposal announced: First announced in the Government's election document Reviving the Heartland'. Subsequently announced by the Minister for Primary Industries and Energy by press release on 1 July 1997 and the Treasurer and the Minister for Primary Industries and Energy in their joint announcement on 12 May 1998.
Financial impact: The cost of the rebate (tax offset) is capped at $80 million in total over four years. It is funded from the Natural Heritage Trust Fund.
Compliance cost impact: A Regulation Impact Statement is contained at the end of Chapter 1.