Webinar: ATO Taxation Ruling (TR2020/2)

27th of August 3.30 EST (1.30 Perth  and 5.30 NZ time)


ATO Taxation Ruling (TR2020/2) Webinar – Deducations for expediture on environmental protection activities.


Presented by:
Matthew Caruso | Matthews Steer Accountants & Advisors
Stephanie Claydon | Asbestos Safety and Eradication Agency




In June 2020, in response to the current Coronavirus crisis and its impact on the local economy, the Federal Government outlined a new scheme designed to stimulate the residential construction market.

The HomeBuilder Grant will provide $25,000 to eligible owner-occupiers to either build a new home or substantially renovate their existing home. Submissions for the grant close 31 December 2020. There are stringent criteria which must be met and substantiated for an applicant to be successful.

The presentation herein describes the HomeBuilder scheme, eligibility criteria and outlines the timing of the scheme. We also highlight relevant case studies to provide context to the grant.

Due to the recent increase in restrictions to stage 4 in metropolitan Melbourne and stage 3 in regional Victoria, the HomeBuilder Grant has been subject to timeline amendments which we will touch on in our presentation.

ATO Tax Ruling (TR2020/2)

This tax ruling allows for an immediate deduction for expenditure incurred for the sole purpose of carrying on environmental protection activities.

We describe and clearly define environmental protection activities and provide guidance on what you can and cannot claim under this tax ruling. We elude to the strict criteria by which must be adhered to in order to claim this deduction.

Detailed examples from the ATO will be provided to offer further clarification and context, specifically limits on deductions when replacing pollutant materials in buildings.


Approximately one third of Australia’s homes contain large amounts of ageing asbestos-containing materials. Incentives are needed to encourage the safe removal of asbestos from Australian homes to prevent exposure to asbestos and eliminate asbestos-related diseases (ARDs). The public has a general belief that asbestos is safe unless disturbed, resulting in homeowners preferring to leave it in place rather than remove it.

In July 2020, the Australian Taxation Office finalised taxation ruling TR 2020/2 for income tax: deductions for expenditure on environmental protection activities. It is applicable to homeowners who manage residential investment properties and includes tax deductions for:


  1. testing where asbestos is suspected (even if asbestos is not found)
  2. engaging a licenced asbestos removalist to remove and dispose of asbestos
  3. replacing removed materials (resulting in a minor degree of alteration and improvement).

The widespread promotion of this taxation ruling is important to encourage and promote the safe removal and disposal of asbestos from Australia’s homes. Another consideration is how to control the risks and protect tenants, who often are under-informed about the risks posed by asbestos and may have limited rights in situations where their landlords propose to undertake removal work.

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