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Jurisdictional responsibility for taxation is generally outside that of resource management agencies. However, an awareness of various tax incentives for conservation activities may allow authorities to inform landholders and to develop and market programs that allow landholders to take advantage of these incentives. Resource requirements for state agencies in relation to tax incentives are generally insignificant.
Tax incentives provide a means of encouraging a range of environmentally sensitive practices in natural resource management and take one of two forms. Tax rebates reduce the amount of tax that a landholder or business is required to pay, while tax deductions subtract an expense from the taxable income of an individual or business.
Some voluntary conservation arrangements allow landholders the benefits of income tax deduction for any loss in land value resulting from conservation activities, as well as special treatment of capital gains tax.
The Australian Tax Office allows tax deductions for capital expenditure on Landcare operations and for water facilities (plant or structural improvement for the purpose of conserving and conveying water). At a state or local level, landholders involved in voluntary conservation arrangements may be eligible for various forms of rate relief.
A local government can encourage environmentally beneficial activities by offering rate rebates to land managers. State governments can offer tax concessions such as land tax rebates for conservation covenants. |