Taxation of Sustainable Rural Water Use and Infrastructure Grants

Amendments to the Income Tax Assessment Act 1997 (the Act) commenced on 28 June 2013.

The amendments to the Act allow recipients of payments from eligible Sustainable Rural Water Use and Infrastructure Program (SRWUIP) programs, to choose to make water infrastructure improvement payments non-assessable non-exempt (NANE) income, with expenditures matched by those payments non-deductible and to disregard any capital gain or loss from related transfers of water rights.

SRWUIP recipients should seek professional legal or accounting advice in applying the amendments to their individual circumstances. For more information relating to this tax measure, please visit the ATO website.

Whether or not taxpayers can make a choice affecting the tax treatment of amounts derived and expenditure incurred for a particular program depends on whether the program is a SRWUIP program listed on this website.

Under section 59-70 of the Income Tax Assessment Act 1997, the programs listed in the table below are considered eligible programs for the days set out in the table.

Eligible program Eligibility start date Eligibility end date
Queensland Healthy Headwaters Water Use Efficiency Program 1 April 2010  
New South Wales Irrigation Farm Modernisation Pilot Program 1 April 2010  
New South Wales Private Irrigation Infrastructure Operators Program 9 April 2010  
Private Irrigation Infrastructure Program for South Australia 1 April 2010  
On Farm Irrigation Efficiency Program 1 April 2010  
Gascoyne Pipeline 28 June 2010  
Irrigator Led Group Proposal Program (Infrastructure removal component) 4 February 2011  
Northern Victoria Irrigation Renewal Program - Stage 2 1 November 2010  
Strategic Subsystem Reconfiguration (Infrastructure removal and reconfiguration component) 1 November 2012  
New South Wales Sustaining the Basin Irrigated Farm Modernisation Program 7 December 2011  
Northern Victoria Irrigation Renewal Program - On Farm 17 October 2011  
Victorian Farm Modernisation Project 26 July 2013  
Sunraysia Modernisation Project 28 October 2013