11 May 2004

Taxation Concessions for Irrigation Water Providers

The Government will provide eligible irrigation water providers with access to the water facilities and landcare tax concessions which are currently available to primary producers, the Minister for Revenue and Assistant Treasurer, Senator Helen Coonan, and the Minister for Agriculture, Fisheries and Forestry, Warren Truss, announced today.

The water facilities and landcare tax concessions will be provided to those irrigation water providers whose main business is supplying water to primary producers. The landcare tax concession will be made available to irrigation water providers supplying water to businesses using rural land.

The measure will be significant in assisting eligible irrigator water providers to renew water supply infrastructure and to enhance water-efficient delivery to primary producers.

It is a useful and balanced way to support irrigation water providers in achieving greater water efficiency and system wide works aimed at sustainable land and water management.

Eligible irrigation water providers will be able to claim a deduction for capital expenditure on water facilities over three years and claim an immediate deduction for capital expenditure on landcare activities.

To be eligible for this concession, the main purpose of the expenditure must be consistent with that presently required for the landcare and water facilities tax concessions.

The measure aligns the deductions available to primary producers and businesses using rural land with deductions available to irrigation water providers which supply those primary producers and businesses with water.

The measure will apply to expenditure incurred, or assets acquired, on or after 1 July 2004.

Media contacts:

Mr Truss’s office: Tim Langmead (02) 6277 7520 or 0418 221 433
Senator Coonan’s office: Jane McMillan (02) 9223 4388 or 0438 690 305