Fijian families and businesses struggling with termite damage will soon receive much-needed financial support, following Cabinet approval of an amendment to Section 28 of the Income Tax Act 2015. This important decision highlights the persistent concerns from communities regarding the serious impact of the Asian Subterranean Termite infestation, which has considerably affected homes, farms, and livelihoods across various regions of Fiji.
Previously, Section 28 allowed property owners to claim tax deductions for funds set aside for repairs resulting from natural disasters such as cyclones, tidal waves, or landslides. For commercial and agricultural properties, the deduction was capped at 1.5 percent of the building’s replacement cost, while residential properties were limited to either 1.5 percent of the replacement cost or $500, whichever was lower.
The newly approved amendment expands the Natural Disaster Reserve’s eligibility to include declared biosecurity emergencies, specifically addressing the ongoing Asian Subterranean Termite infestation, now recognized as a national threat. With this amendment, affected property owners will be able to effectively utilize reserve funds for repairs or reconstruction of structures damaged by this pest.
For many families witnessing their homes gradually deteriorate due to this silent crisis, this legislative change brings a much-needed sense of relief. Financial provisions that were previously focused on recovery from cyclones will now also serve as vital support against the prolonged and severe pest invasion impacting communities for over a decade.
The Bill to put these changes into effect will be drafted with input from the National Disaster Management Office, ensuring the policy is both practical and responsive to people seeking immediate assistance. This proactive approach is part of a broader national strategy aimed at tackling the termite issue head-on.
As homeowners face the deterioration of their walls and farmers contend with the loss of critical infrastructure, this amendment signifies a crucial advancement in recovery and rebuilding efforts, easing the financial strain many have endured during these challenging times. This initiative not only addresses immediate concerns but also reflects a commitment to supporting communities in overcoming the challenges posed by environmental threats.