Item 28 - Landcare and water facility tax offset

You cannot claim the Landcare and water facility tax offset for expenditure incurred after the 2000-01 income year.

Use the Landcare worksheet (lcr) to keep a record of the offset brought forward and where there is Exempt income to be offset, the worksheet will calculate the amount to be integrated to the main return. Refer to Landcare and water facility tax offset (lcr).

Landcare and water facility tax offset brought forward from prior years

Show at label G the total of any landcare and water facility tax offsets carried forward and available to be applied in this income year.

The landcare and water facility tax offset is a carry-forward, non-refundable tax offset. This means you can carry forward indefinitely any excess tax offset, after tax liabilities are met, to use against future income tax liabilities. Before the tax offset can be applied in a later income year, it must be successively reduced by any unused net exempt income derived in the year the tax offset arose and any subsequent income year - providing you had a taxable income in that year. From 1 July 2016, the tax offset is reduced by 27.5% for small business entities and 30% for other corporate entities, of net exempt income.

The amount to show at label G should take this reduction into account.

CCH References

18-080 Water facilities

18-100 Landcare operations