Fed: Labor, Greens say land tax break OK but could go further

AAP General News (Australia)
08-20-2001
Fed: Labor, Greens say land tax break OK but could go further

EDS: Changing keyword from Tax Conservation



By Jim Hanna, Economics Correspondent

CANBERRA, Aug 20 AAP - Landholders who donated property for conservation purposes would
get an income tax deduction under an initiative announced today by Prime Minister John
Howard.

But while the move, believed to cost about $5 million a year, was welcomed by Labor
and the Australian Greens, both said the government could and should have gone further.

The move would encourage landholders and environmental philanthropic organisations
to enter into covenants to conserve land in perpetuity to maintain its environmental value,
Mr Howard said in a statement.

"It will allow income tax deductions to landholders who enter into perpetual conservation
covenants for no consideration with deductible gift recipients," he said.

"It also complements recently announced changes to the capital gains tax rules which
ensure that landholders who set aside part or all of their land for conservation in perpetuity
for consideration, are not disadvantaged."

The opposition said it proposed a similar initiative two years ago.

"A last minute pitch for Green votes has obviously been the (government's) main motivating
characteristic," Labor's environment spokesman Senator Nick Bolkus said.

Labor's original plan allowed the ongoing maintenance cost of such land also to attract
deductibility, Senator Bolkus said.

"It's something we would give serious consideration to in government," he said, adding
that all commitments had to be within the Budget parameters.

Australian Greens Senator Bob Brown said the government's move was a modest step forward
that fell short of the mark.

"It implies rejection of bigger proposals discussed by the Community Business Partnerships,"

Senator Brown said.

He said he would lobby for the government to consider those proposals, which included
tax deductibility for the full value of high conservation land sold to accredited recipients
for less than its value, and for expenses incurred in managing the covenanted land.

They also included deductibility when land was gifted but the owner/occupier wanted
to keep living on the land.

AAP jph/vr/bwl

KEYWORD: LAND (CHANGING KEYWORD)

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