Farmers’ riparian planting

(Clauses 20 and 21)

Summary of proposed amendments

Section DO 2, which presently deals with the planting of trees for certain purposes, is being extended to allow an immediate deduction for expenditure on plantings (plants or trees) to mitigate the detrimental effects on a water-course from the discharge of farming or agricultural contaminants.

It is officials’ view that this merely confirms farming current practice.

A consequential amendment to the heading in section DO 1 is also proposed.

Application date

The amendment will be effective from the 2011–12 income year, except if the taxpayer has claimed such expenditure in an earlier period and that deduction is grandparented.