Document ID: chunk:federal_register_of_legislation:C2025C00029:section:129:p1
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 129 (pt 1/10)
Character Range: 725857–728676

129     Youthsafe                                                                                                                               item 4.2.50

30‑320  Effect of this Subdivision
  This Subdivision is a *Guide.
Note: In interpreting an operative provision, a Guide may be considered only for limited purposes: see section 950‑150.

Division 31—Conservation covenants

Guide to Division 31

31‑1  What this Division is about

      You can deduct an amount if you enter into a conservation covenant over land that you own and you satisfy certain conditions.
      The amount you can deduct is the difference between the market value of the land just before and after you enter into the covenant.

Table of sections

Operative provisions
31‑5 Deduction for entering into conservation covenant
31‑10 Requirements for fund, authority or institution
31‑15 Valuations by the Commissioner

Operative provisions

31‑5  Deduction for entering into conservation covenant
 (1) You can deduct an amount if:
 (a) you enter into a *conservation covenant over land you own; and
 (b) the conditions set out in subsection (2) are met.
 (2) These conditions must be satisfied:
 (a) the covenant must be perpetual;
 (b) you must not receive any money, property or other material benefit for entering into the covenant;
 (c) the *market value of the land must decrease as a result of your entering into the covenant;
 (d) one or both of these must apply:
 (i) the change in the market value of the land as a result of entering into the covenant must be more than $5,000;
 (ii) you must have entered into a contract to acquire the land not more than 12 months before you entered into the covenant;
 (e) the covenant must have been entered into with:
 (i) a fund, authority or institution that meets the requirements of section 31‑10; or
 (ii) the Commonwealth, a State, a Territory or a *local governing body; or
 (iii) an authority of the Commonwealth, a State or a Territory.
Note: You must seek a valuation of the change in market value from the Commissioner: see section 31‑15.
 (3) The amount you can deduct is the difference between the *market value of the land just before you entered the covenant and its decreased market value just after that time, but only to the extent that the decrease is attributable to your entering into the covenant.
Note: You can spread the deduction over a 5 year period: see Subdivision 30‑DB.
 (4) For the purposes of paragraph (2)(a), a covenant is treated as being perpetual even if a Minister of a State or Territory has a power to rescind it.
 (5) A conservation covenant over land is a covenant that:
 (a) restricts or prohibits certain activities on the land that could degrade the environmental value of the land; and
 (b) is permanent and registered on the title to the land (if