Landcare tax benefits
Are donations to Landcare tax deductible?
Yes! Donations from corporations and individuals go a long way in helping Landcare groups continue their activities that look after the environment.
For more information on how you can deduct your donation on your next tax return, view the ATO fact sheet.
Tax concessions for Landcare works
To support the efforts of Australians protecting our rural landscape, the Australian Government provides tax benefits to rural landholders that undertake Landcare works. You can claim a deduction for capital expenditure you incur on a Landcare operation for land in Australia in the year it is incurred.
Who can claim the Landcare operations tax deduction?
A primary producer and a business using rural land and, for expenditure incurred on or after 1 July 2004, a rural land irrigation water provider. The deduction is reduced if the land is not used wholly for either:
- a primary production business, or
- a business for the purpose of producing assessable income from the use of rural land – except a business of mining or quarrying.
What is a 'rural land irrigation water provider'?
A rural land irrigation water provider is an entity whose business is primarily the supply of water (other than by using a motor vehicle) to primary producers or to businesses using rural land (except for a mining or quarrying business).
What can be claimed in respect of Landcare?
You can claim a deduction for capital expenditure you incur on a Landcare operation for land in Australia in the year it is incurred.
What is a Landcare operation?
A Landcare operation is one of the following operations:
- eradicating or exterminating animal pests from the land
- eradicating, exterminating or destroying plant growth detrimental to the land
- preventing or combating land degradation other than by the use of fences
- erecting fences to keep out animals from areas affected by land degradation to prevent or limit further damage and assist in reclaiming the areas
- erecting fences to separate different land classes in accordance with an approved Land Management Plan
- constructing a levee or similar improvement
- constructing drainage works – other than the draining of swamps or low-lying areas – to control salinity or assist in drainage control, or
- for expenditure incurred on or after 1 July 2004, a structural improvement or an alteration, addition, extension or repair to a structural improvement that is reasonably incidental to the last two operations (that is, the construction of a levee or drainage works).
Land Management Plan
In order to claim Landcare tax deductions, landholders may need to have a Land Management Plan. An approved land management plan is a plan that:
- shows the different classes within the land and the location of any fencing needed to separate any of the land classes to prevent land degradation
- describes the kind of fencing and how it will prevent land degradation, and
- has been prepared by, or approved in writing as a suitable plan for the land by:
- an officer of an Australian Government agency responsible for land conservation who has authority to do so, or
- an individual who was at the time approved as a farm consultant.
The Department of Agriculture Fisheries and Forestry holds a register of authorised consultants who can prepare Land Management Plans for the purposes of Landcare deductions.
For information about the register, please email Landcare Contact.
To apply to be on the register you should read the following:
Complete the Application for the Register of Consultants and send your application to:
Landcare and Sustainable Agriculture Branch
Sustainable Resource Management Division
Department of Agriculture, Fisheries and Forestry
GPO Box 858
Canberra ACT 2601
26 Mar 2013