To meet its ‘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. This research paper examines how these tax arrangements might, or might not, influence farmers' decisions to enter conservation covenants. It shows how the complexity and uncertain benefits of this incentive are likely limiting its uptake.

Key findings

• For many farmers, the tax arrangements likely mean that they would face an increased tax liability in addition to a financial loss from placing a conservation covenant on part of their land.
• Since 2014, the ATO has approved only 18 income tax deductions for farmers who had entered into conservation covenants.
• Income tax deductions appear to have little positive incentive effect on decisions to enter into conservation covenants.
• There would be value in governments investing in a better understanding of how incentives to conserve biodiversity on private land could be improved.