LDC New Incentives Report | Page 26

Type Name Description and examples Strengths Challenges
Land purchase
Purchase and manage land with environmental values. This can include purchase, covenant and resell in a revolving fund. E. g.:
� Australian Bush Heritage Fund( Biodiversity that is not represented in the Reserve System
� Secures benefit over time
� Up front cost to purchase
� Ongoing cost to manage
Local government rate rebates
Rate exemption, reduction of differentiation offered as an incentive for positive environmental actions or performance. E. g.:
� Brisbane city council rate reductions for properties who meet Land for Wildlife certification
� Could engage landholders who have been difficult to engage with before
� NQDT do not have the authority to conduct a rate rebate scheme directly
� Won’ t be attractive in local government areas with a low rate base
� Linking land management to rate rebate and ensuring outcomes over time
Tax concession
Tax rebate, reduction or exemption offered as an incentive for environmental actions or performance. E. g.:
� Properties with a Nature Refuge agreement eligible for a tax concession
� Removes a known barrier to improved land management
� Could engage landholders who have been difficult to engage with before
� NQDT do not have the authority to conduct a tax related incentive
� How to ensure landholders conduct their onground actions
Low interest loans Funding at low interest repayments for approved projects. E. g.:
� Queensland Rural and Industry Development Authority has low interest loans for a range of projects including sustainability, disaster recovery etc.
� Directly addresses a known barrier to adoption to land management change
� Provides a large upfront amount of finances which could be useful for projects requiring large capital investment( such as engineering works)
� Already exist( QRIDA)
� Loan repayments still have to be made by the landholder
� Interest of banks to engage
� Does not fund the ongoing lost income from land taken out of production. There is still a financial cost to landholders
Debt for conservation
Creditor or third party reduce debt burden in exchange for land management actions. E. g.:
� Examples in developing nations
� Removes a known barrier to improved land management
� Could engage landholders who have been difficult to engage with before, especially if they are struggling with high debt servicing obligations
� How to ensure landholders conduct their onground actions
� Potentially high cost and unproven in western countries
24 | Landholders driving change: Exploring new incentives