The Australian Taxation Office (ATO) has produced a fact sheet "Landcare, riparian and similar expenses for primary producers" which focuses on the tax implications of riparian management activities.
The fact sheet helps to clarify how riparian management works fit into the formal ATO definition of Landcare activities. For example, many of us think of riparian revegetation as a Landcare type of activity. However, it is NOT considered a Landcare expense for tax purposes.
Regarding typical on-ground riparian works:
• fencing, water infrastructure and ongoing weed management are immediately deductible,
• initial site prep, weed control and revegetation are able to be added to a landholder's capital gains tax cost base, but are not immediately deductible.
Note - the above applies to riparian activities undertaken at the landholder's expense, not when funded by a CMA. See fact sheet for detailed information.
Who developed the fact sheet: the Department of Environment, Land, Water and Planning's (DELWP) Waterway Health Team worked with the ATO to develop the fact sheet in collaboration with Basalt to Bay Landcare Network.More ATO information on Landcare operations: go to https://www.ato.gov.au/business/primary-producers/in-detail/capital-expenditure/landcare-operations/