Tax deduction entitlements for Primary Producers undertaking weed management

By 07/12/2018News

Did you know that if you are running a primary production business on land in Australia you can claim tax deductions for various weed control?

Not everyone does and this prompted Lisette Mill, Network Facilitator at Basalt To Bay Landcare Network and outgoing committee member of the Victorian Gorse Taskforce (VGT), to champion the Australian Taxation Office (ATO) to produce a clear fact sheet.

Lisette noted that farmers were asking about grants that used to exist, including for weed control in areas that are not deemed to have waterway or biodiversity values of public significance.

‘I had heard about the Landcare tax incentives, but couldn’t find an easy guide on the ATO website,’ said Lisette. ‘When I contacted them I was lucky to be passed on to the Director of Small Business and within 3 weeks of having a chat they had produced a fact sheet to explain what farmers could claim to establish shelterbelts, and my partnership with the ATO commenced.’

Since January 2017, four fact sheets have been created covering tree farming/forestry operations, Landcare and similar expenses, shelterbelts and fire preparedness. These fact sheets apply to any registered primary producer for tax purposes anywhere in Australia and can be found on the Basalt to Bay website here.

The most relevant fact sheet for the purposes of noxious weed control is entitled ‘Landcare and similar expenses for primary producers’. The fact sheet clearly outlines entitlement to claim income tax deductions for both capital costs and revenue expenses you incur on landcare, riparian and similar operations, including works for woody weed control.

The ‘Landcare and similar expenses for primary producers’ fact sheet and additional resources on gorse control can be found on the Gorse Management section of the VGT website.