The Productivity Commission has recently released the following research paper.
Protecting biodiversity on farms: do tax arrangements help?
To meet our ‘30% by 2030’ commitment under the Kunming–Montreal Global Biodiversity Framework, Australia must protect or conserve nature on an additional 60 million hectares of land over the next five years.
Much of this will have to take place on privately held land. Tax concessions as an incentive for farmers and landholders who adopt conservation covenants have been around for many years. But since 2014, the ATO has approved only 18 income tax deductions for farmers who had entered into conservation covenants.
This research paper examines how these tax arrangements might, or might not, influence farmers’ decisions to enter conservation covenants. We show how the complexity and uncertain benefits of this incentive are likely limiting its uptake.
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