Take Advantage of Water Facility Tax Deductions

18 July 2025

Take Advantage of Water Facility Tax Deductions

Take advantage of the water facility tax deductions when you buy a Pioneer Water Tank!

As a primary producer or an irrigation water provider you may be entitled to claim a deduction for capital expenditure incurred on a water facility.

A water facility includes the following items:

water tanks
pumps (including those used for fire-fighting)
tank stands
dams, bores & wells
irrigation channels or pipes
water towers and windmills
extensions or improvements to any of these items.

Here's what you need to know

The expenditure must be incurred on or after 1 July 2004.
Your expenditure must have been incurred primarily and principally for the purpose of conserving or conveying water for use in primary production businesses.
The deduction must be reduced to reflect any time when the facility was not wholly used for a taxable purpose. For example, you can’t claim a deduction for a swimming pool even though the water is available for emergency use, such as for fire-fighting or irrigation.

Deduction Amount

If you incurred capital expenditure on a water facility from 12 May 2015 – you can deduct the whole amount in the income year in which you incurred the expenditure.

If you incurred capital expenditure on a water facility before 12 May 2015 – you can deduct one-third of the amount in the income year in which you incurred the expenditure. You deduct one-third in each of the following two years.

Costs incurred by a partnership are allocated to each partner, who can then claim the relevant deduction in respect of their share of the expenditure.

Small Business Owners

As a small business owner you may be eligible to immediately deduct your Pioneer Water Tank purchase. This applies if your purchase is less than $20,000 and made before 12 May 2015.

Pioneer can provide primary producers and small businesses with up to 250,000 litres of secure & reliable water storage capacity for under $20,000. Include a pressure pump or fire pump in your project to take full advantage of immediate deductions.

You can use the new threshold amounts in claiming deductions in your 2015 and 2016 income tax returns.

The deduction is claimed in the income year in which the asset is first used or installed ready for use.

Be sure to get in touch with our expert team to talk through our great range of water storage solutions. Free Call 1800 921 384 or request a quote.

Please visit the ATO website for more detail on water facility tax deductions or the small business Instant Asset Threshold Increase.

We recommend you consult with your financial advisor for professional tax advice.

References:

https://www.ato.gov.au/Business/Primary-producers/In-detail/Capital-expenditure/Water-facilities/

https://www.ato.gov.au/Newsroom/smallbusiness/Lodging-and-paying/Instant-asset-threshold-increase-to-$20,000/

Disclaimer: Please be aware, some information is provided by third-party providers and may not be accurate, complete or up to date. As a result, Pioneer Water Tanks accepts no responsibility (expressed or implied) the accuracy, currency and completeness of information or for any error or omission.

For more information or pricing on world-class water storage today, call 1800 999 599 or fill out our form online, and we’ll be in touch shortly.

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