Who can claim
This deduction is available to individuals and companies.
- The land is in Australia and is used for primary production or an eligible taxable rural-land business other than mining or quarrying.
- Alternatively, you are an irrigation water provider and the landcare operation is carried out on land used for your irrigation-water business.
- The work is a qualifying landcare operation, such as eligible pest, weed, erosion, salinity, drainage or approved fencing work.
- For a partnership expenditure, each eligible partner claims their allocated share; the partnership itself does not claim the landcare deduction.
What you cannot claim
- Where the water-facility or carbon-sink-forest rule applies to the same expenditure, the statutory priority rule must be followed.
- Private or non-taxable land use reduces the deduction.
How the amount is worked out
Claim qualifying capital expenditure in the income year incurred, reduced for non-taxable use. For partnership expenditure, allocate the claim to the eligible partners rather than the partnership. Do not net a recoupment from the deduction; include a recouped deductible amount in assessable income under the recoupment rules.
Records the ATO expects
- Land-use evidence
- Approved land management plan where required
- Invoices
- Partnership allocation where relevant
- Recoupments and private-use calculation
Where this rule comes from
Primary source: ATO landcare operations (Updated 22 August 2025). Reviewed 30 July 2026. Covers the 2025-26 and 2026-27 income years.