You can claim a deduction for capital expenditure you incur on a landcare operation for land in Australia in the year it is incurred if you are a:
- primary producer
- business using rural land for a taxable purpose, except when mining or quarrying
- rural land irrigation water provider if your expenditure incurred on or after 1 July 2004
A rural land irrigation water provider primarily and principally supplies water (other than by using a motor vehicle) to primary producers or to businesses using rural land, except for a mining or quarrying business.
The deduction is reduced to reflect any use of the land for a non-taxable purpose.
A landcare operation is one of the following operations:
- when primarily and principally
- 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
- constructing drainage works to control salinity or assist in drainage control
- erecting fences to separate different land classes in accordance with an approved land management plan
- constructing a levee or similar improvement
- 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 construction of a levee or drainage works.