Claiming a tax deduction for shelterbelt establishment
Did you know that you may be able to claim an income tax deduction for the cost of establishing shelterbelts on land you use to carry on a primary production business?
A shelterbelt is a line of trees or shrubs planted to protect an area from fierce weather. They are often created on a farm to protect crops and livestock, reduce soil erosion, control salinity and improve biodiversity.
When can I claim a deduction?
You can claim an income tax deduction if the shelterbelt is established primarily and principally for the purpose of preventing or fighting land degradation.
You cannot claim a deduction for a shelterbelt created for a private purpose, such as to protect a home.
What kind of expenses can I claim?
You can claim an immediate deduction for any new fencing and reticulation costs related to the shelterbelt.
You can also claim for expenses such as site preparation, chemicals and trees.
For more information, read the handy Fact Sheet the ATO have produced.
