The National Farmers' Federation is warning that non-commercial losses rules to be introduced next July will cause many land owners to abandon environmental protection practices.
The Australian Financial Review reports NFF manager of economics Charles McElhone as saying the new rules, which will remove tax deductions on non-commercial losses from individuals with an income over $250,000, could mean some farmers would sacrifice investments in activities designed to deliver positive environmental outcomes.
"It would be a poor outcome if these individuals failed to invest in delivering positive environmental outcomes on their properties due to taxation concerns," he said.
"The NFF is concerned that the first expenses to be sacrificed may be those like erosion control and pest control measures, water conservation and spraying weeds."
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