Quick Answer: The NSW Rural Assistance Authority (RAA) has historically offered rebates on on-farm emergency water infrastructure through schemes like the On-Farm Emergency Water Infrastructure Rebate. Eligible primary producers can claim a percentage of eligible construction costs back. Programs change — always confirm current availability with the RAA or your state DPI.

Get 25% of your dam investment refunded through the NSW Rural Assistance Authority On-Farm Emergency Water Infrastructure Rebate Scheme.
This program aims to provide funding for primary producers for the costs associated with the purchase and installation of on-farm water infrastructure that addresses animal welfare needs and improves resilience to drought.
The rebate is 25% of the cost of purchase, delivery and if applicable, the labour cost to engage a certified dam builder to install water infrastructure for animal welfare needs. The maximum that can be claimed is $25,000 per farm enterprise.
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Key Takeaways
- Federal and state government programs have offered rebates or co-investment for on-farm water storage — check current availability
- Eligibility typically requires a business plan, minimum farm scale, and construction by a licensed contractor
- Keep all invoices and receipts — most rebate programs are reimbursement-based, not upfront funding
- Programs change frequently; always check with the NSW RAA, your state DPI, or a rural financial counsellor for current schemes
- Tax deductions for dam construction may also be available under Primary Production Asset rules — speak with your accountant
Frequently Asked Questions
Is there a government grant for farm dam construction in NSW?
NSW has run the On-Farm Emergency Water Infrastructure Rebate Scheme through the RAA. Availability changes with government budget cycles — check the RAA website (raa.nsw.gov.au) or call your local DPI office for current programs.
Can I claim farm dam costs as a tax deduction?
Under certain conditions yes — the ATO allows deductions for capital improvements to land used for primary production, including earthworks for water conservation. Speak with your accountant about the specific rules under Division 40 and the water facility write-off provisions.
What documents do I need to claim a rebate on dam construction?
Typically: a tax invoice from your contractor, photos before and after, evidence of property ownership or lease, and a completed application form for the specific program. Requirements vary by scheme.
Does Big Ditch help clients navigate rebate programs?
We can advise on the types of programs available and make sure your project documentation is in order. For formal financial advice on grants and tax deductions, we recommend speaking with a rural financial counsellor or your accountant.
Need help with your own dam? Book a site inspection with Big Ditch — we build and repair dams across NSW, Queensland, and Victoria.
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