Fijian families and business owners grappling with the challenges posed by termite damage will soon benefit from enhanced financial support, as the Cabinet has approved an amendment to Section 28 of the Income Tax Act 2015. This crucial decision underscores the concerns expressed by communities over the years regarding the serious impact of the Asian Subterranean Termite infestation, which has severely affected homes, farms, and livelihoods across multiple regions of Fiji.
Currently, Section 28 permits property owners to claim tax deductions for funds allocated to a reserve for repairs after natural disasters such as cyclones, tidal waves, or landslides. For commercial and agricultural properties, the deduction is limited to 1.5 percent of the building’s replacement cost, while residential properties face a cap of either 1.5 percent of replacement cost or $500, whichever is lower.
The newly approved amendment will broaden the Natural Disaster Reserve’s scope to encompass declared biosecurity emergencies, specifically including the ongoing Asian Subterranean Termite infestation, which has been classified as a national threat. Once the amendment is enacted, impacted property owners will have the opportunity to utilize their reserve funds effectively for the repairs or reconstruction of damaged structures.
For countless families witnessing the gradual deterioration of their homes due to this silent crisis, this legislative change brings a welcomed sense of relief. Financial mechanisms that were traditionally aimed at aiding recovery from cyclones can now be adapted to address the repercussions of a prolonged and devastating pest invasion affecting communities over the past decade.
The Bill to implement these changes is set to be drafted with assistance from the National Disaster Management Office, ensuring that the policy remains practical and responsive to those needing assistance immediately. This proactive approach aligns with a comprehensive national strategy to combat the termite issue.
With homeowners dealing with deteriorating walls and farmers suffering losses of critical infrastructure, this amendment represents a significant step forward in facilitating recovery and rebuilding efforts, alleviating the financial burden many have faced during this challenging time.