Private ruling: Deductions
Published: March 2014
Ruling period: Year ending 30 June 2013
Date scheme commenced: 1 July 2012

Ruling: Q1: Are you entitled to a deduction for the cost of eradicating weeds and noxious flora from your property? | A1: No.

Relevant facts and circumstances: You reside on a property classified as rural residential. Annually you try to maintain the property by eradicating noxious weeds and other noxious flora.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 8-1 | Income Tax Assessment Act 1997 subsection 40-755(1) | Income Tax Assessment Act 1997 subsection 40-755(2)

Reasons for decision: Summary: General deductions are those deductions which are allowable under section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997) and relate to the gaining or producing of your assessable income or were necessarily incurred in carrying on a business for the purpose of gaining or producing your assessable income. Subsection 40-755(2) of the ITAA 1997 deals specifically with deductions for environmental protection activities. Environmental protection activities are any of the following activities that are carried on by you or for you: (a) preventing, fighting or remedying: (i) pollution resulting, or likely to result, from your earning activity (ii) pollution of or from the site of your earning activity (iii) pollution of or from a site where an entity was carrying on any business that you have acquired and carry on substantially unchanged as your earning activity, (b) treating, cleaning up, removing or storing: (i) waste resulting, or likely to result, from your earning activity (ii) waste that is on or from the site of your earning activity (iii) waste that is on or from a site where an entity was carrying on any business that you have acquired and carry on substantially unchanged as your earning activity. No other activities are environmental protection activities. In your circumstances you are not gaining or producing assessable income on your land and the eradication of noxious weeds and other noxious flora is not a specific deduction allowable under environmental protection. Therefore there is no deduction available under sections 8-1 or 40-755 of the ITAA 1997.