INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART XII - DROUGHT INVESTMENT ALLOWANCE  

Division 1 - Object, key principle and overview  

SECTION 626   THE KEY PRINCIPLE  

A taxpayer incurring capital expenditure of at least $3,000 on a new item of drought mitigation property for use in producing assessable primary production income qualifies for a drought investment allowance deduction of 10% of the expenditure. There is a $5,000 limit in relation to deductions.

Note:

The key concept of drought mitigation property is defined in Division 4 .