Supplementary Explanatory Memorandum (NO. 2)(Circulated by the authority of the Treasurer, the Hon. J.C. Kerin, MP)
General Outline and Financial Impact of the Amendments
An amendment to the Bill is to be moved on behalf of the Government which will amend Taxation Laws Amendment Bill (No.2) 1991 to relax the requirements for a deduction where fences are erected primarily and principally to prevent land degradation. This amendment will not have any impact on the revenue.
Explanation of the Amendment
The Bill provides a deduction for expenditure incurred on the erection of fences, separating different land classes, by primary producers and taxpayers who carry on a business using rural land in Australia where the fences are erected for the purposes of preventing land degradation in accordance with an approved farm plan of the entire area used by the primary producer or rural business.
The proposed amendments will ensure that a deduction for the erection of fences is also available where the expenditure has been incurred in accordance with an approved land management plan of only a part of the area on which the primary production or rural business is being conducted on. The land management plan must relate to the area on which the fences are erected and show the differing land classes of that area and how they will prevent land degradation.