Water Saving - 12 May 2026

Water Tank Rebates, Tax Deductions and Depreciation: How to Save Money on a Rainwater Tank

Buying a water tank can feel like a high upfront cost, but there may be ways to reduce its real cost. Depending on where you live and how the tank is used, you may be eligible for a local rainwater tank rebate, a business depreciation deduction, or a water facility deduction as a primary producer.

The important part is knowing the difference between a rebate and a tax deduction.

A rebate usually gives you money back after you buy and install an eligible tank. A tax deduction usually doesn’t give you the full cost of the tank back in cash. Instead, it may reduce your taxable income if the tank is used for business, farming, or another eligible income-producing purpose. The Australian Taxation Office states that eligible businesses may be able to claim immediate or accelerated deductions for the business portion of a depreciating asset.

This guide explains how water tank rebates and tax deductions may work, who may be eligible, what documents you may need, and how to estimate your potential savings before you buy.

Important: This article is general information only. Tax rules and rebate programs can change. Always check with your accountant, the Australian Taxation Office, your local council, or your water authority before making a claim.

Explore Tankworld’s water tanks for sale, including small water tanks, medium water tanks, and large water tanks.

Can You Claim Money Back on a Water Tank?

Yes, but it depends on your situation. You may be able to reduce the cost of a water tank in three main ways:

Saving option	Best suited for	How it helps
Water tank rebate	Eligible homeowners in participating council or water authority areas	May provide a direct rebate after purchase and installation
Business tax deduction or depreciation	Eligible businesses using the tank for income-producing purposes	May reduce taxable income
Primary producer water facility deduction	Farmers and eligible primary producers	May allow an immediate deduction for eligible water facility costs

The right option depends on your property, location, tank use, business structure, and whether your local council or water authority currently has a rebate program open.

Water Tank Rebate and Tax Deduction Assessment Form

Use this simple form in the blog to help customers self-assess before contacting Tankworld, a council or an accountant.

Example Savings: How Much Could You Reduce the Cost By?

These examples are general only. They are not financial advice.

Is This Guide the Same as a Drought Relief Grant?

No. This guide provides a broader overview of the main ways Australians can reduce the cost of a water tank, including residential rebates, council rebates, business tax deductions, depreciation, instant asset write-off rules, and primary producer water facility deductions.

Drought relief grants are one possible pathway, but they usually apply to specific farmers, regions, timeframes and eligibility rules. If you are looking for state-specific drought support, read our dedicated guides for South Australia drought relief water tank rebates and Victoria farm drought support grants.

What Is the Difference Between a Water Tank Rebate, Tax Deduction and Depreciation?

Term	What it means	Simple example
Water tank rebate	A direct rebate or reimbursement from a council, water authority or government program	A council pays $500 after an eligible tank is installed
Tax deduction	A claim that may reduce taxable income	A business claims the business-use portion of a tank costs
Tax depreciation	Claiming the decline in value of a business asset over time	A business claims part of the tank cost each year
Instant asset write-off	An immediate deduction for eligible business assets under the relevant threshold	A small business claims an eligible asset under the ATO threshold
Primary producer water facility deduction	A tax rule for eligible water facilities used by primary producers	A farmer claims an eligible tank, pipe or pump setup used for primary production water

The Australian Taxation Office says eligible businesses may be able to claim an immediate deduction for the business portion of an asset’s cost in the year the asset is first used or installed and ready for use.

Water Tank Rebates: Can You Get Money Back After Buying a Tank?

A water tank rebate is usually the most direct money-back option for homeowners. These rebates are normally managed by local councils, water authorities or special government programs. They may help cover part of the cost of a new rainwater tank, but they rarely cover the full cost of the tank, delivery, plumbing, and installation.

Water tank rebates are usually based on your property location, property type, town water connection, minimum tank size, whether the tank is new, whether the tank is required by BASIX or planning rules, licensed plumber requirements, how the water is used, and whether the program is still open.

If you are reviewing water storage as a farm or rural property investment, compare our farm water tanks for sale and speak with your accountant about any tax treatment that may apply. Many rebate programs are first-come, first-served, so it is best to check before buying.

Current Water Tank Rebates and Grants by State

Water tank rebates and grants are different from tax deductions. Rebates and grants may reduce the upfront or out-of-pocket cost of a tank, while tax deductions usually reduce taxable income. The programs below are examples only and may change, close or run out of funding

New South Wales Water Tank Rebates

Area	Current rebate example	Who may be eligible
Rous County Council	$200 to $1,000 based on tank size, plus possible internal connection rebates	Eligible residential town water customers in the Rous bulk water supply area
Armidale Regional Council	Rebate for tanks with a minimum 2,000 litre capacity	Residents of the Armidale Region with existing residential properties
Inner West Council	Up to $2,000 standard rebate, with higher support for eligible low-income households	Eligible ratepayers, residents and businesses in the local government area
Ku-ring-gai Council	Up to $500 for tank installation and extra support for internal connections	Eligible residents and businesses under the Water Smart rebates

Rous County Council states that eligible tanks must be installed, completed and paid for between 1 July 2023 and 30 June 2026. The program also lists rebate tiers ranging from $200 to $1,000, depending on tank size, with additional support for certain internal connections.

Armidale Regional Council says the rebate applies to rainwater tanks with a minimum capacity of 2,000 litres, while commercial, industrial and other non-residential properties are not eligible.

Inner West Council lists a standard rebate of up to $2,000, with extra support for eligible low-income households.

Ku-ring-gai Water Smart rebates allow eligible residents and businesses to claim up to $500 toward rainwater tank installation and $250 per internal connection, with a maximum of two internal connections.

Can New South Wales Homeowners Get a Free Water Tank?

Usually, no. Most rebates reduce the cost rather than covering the whole tank and setup. However, if you choose a smaller eligible tank and qualify for a higher rebate or additional internal connection support, the rebate can significantly reduce the final out-of-pocket cost.

Victoria Water Tank Rebates

Program	Current support	Who may be eligible
Recovery Water Tank Cleaning Rebates	Up to $1,500 total for eligible cleaning costs	Rural households impacted by the 2026 Victorian bushfires and not connected to town water
Rainwater and Septic Tank Replacement Program	Up to $3,000 for some rainwater tank or firefighting water tank support	Eligible East Gippsland and Towong Shire households impacted by the 2019-20 Eastern Victorian Fires
Farm Drought Support Grants	Up to $5,000 statewide, or up to $10,000 in eligible south-west Victoria areas	Eligible Victorian primary producers for drought-related infrastructure, including tanks, pipes, troughs and dams

The Victorian Recovery Water Tank Cleaning Rebates program supports rural households impacted by the 2026 Victorian bushfires, with up to $1,500 total for eligible domestic drinking water cleaning costs.

Victoria’s Rainwater and Septic Tank Replacement Program supports eligible residents in East Gippsland Shire and Towong Shire impacted by the 2019-20 Eastern Victorian Fires. Applications close at 5 pm on 29 May 2026.

Agriculture Victoria says Farm Drought Support Grants may support eligible on-farm infrastructure improvements, including water infrastructure upgrades.

Can Victorian Homeowners Get a General Rainwater Tank Rebate?

Based on current official sources checked, Victoria’s current water tank support is more targeted toward bushfire recovery, domestic drinking water safety, and farm drought support rather than a broad statewide rebate for every household rainwater tank purchase.

South Australia Water Tank Rebates

Area	Current rebate example	Who may be eligible
City of West Torrens	Residential rainwater tank and rain garden rebates until 30 June 2026	Local residential property owners, with a minimum 1,000-litre tank
City of Mitcham	50% of the purchase price up to $150 for rainwater tanks	Eligible residents under the Sustainable Living Subsidy Program
Other South Australia councils	Varies	Check the local council website

City of West Torrens says its Residential Rainwater Tank and Rain Garden Rebates are available until 30 June 2026 and apply to the cost of a new rainwater tank with a minimum capacity of 1,000 litres, or to a planter box rain garden.

City of Mitcham says its Sustainable Living Subsidy Program rebates include rainwater tanks at 50% of the purchase price, capped at $150.

The South Australian Government notes that rainwater tanks are part of water-saving home design, and many people install a plumbed minimum-sized rainwater tank for new dwellings or some extensions.

Can South Australia Residents Claim a Water Tank Rebate?

Some South Australian residents can, but it depends on the local council. The City of West Torrens and the City of Mitcham currently list rainwater tank rebate or subsidy options, while other councils may have different programs or no current rebates.

What Size Water Tank Do You Need for a Rebate?

Tank size	Rebate potential	Best suited for
Under 1,000L	Often too small for rebate programs	Small gardens, very tight spaces
1,000L	May qualify in some council programs	Courtyards, small homes, compact rainwater use
2,000L	Common minimum for many rebate programs	Homes, gardens, and basic household water storage
4,500L to 8,999L	May reach higher rebate tiers in some areas	Larger gardens and higher water use
9,000L plus	May qualify for larger rebate tiers	Larger residential blocks and rural properties
10,000L plus	Better suited for higher water security	Rural homes, farms, acreage and business use

For smaller properties, view small water tanks. For larger households, rural properties and bigger storage needs, compare medium water tanks and large water tanks.

How to Apply for a Water Tank Rebate

1. Search your council website for “rainwater tank rebate”.
2. Check if your property address is eligible.
3. Confirm whether the program is open and funded.
4. Check the minimum tank size.
5. Confirm whether installation must be completed by a licensed plumber.
6. Check whether the tank must be connected to toilets, laundry, garden taps or household use.
7. Ask whether BASIX-required tanks or building approval requirements are excluded.
8. Keep the tax invoice, receipt, tank size details and installation documents.
9. Submit the application before the closing date.
10. Keep a copy of the approval and payment confirmation.

For example, Armidale Regional Council requires proof of purchase showing the tank size, a payment receipt, a recent rates notice, photo ID matching the property address, a licensed plumber declaration form, and bank details via its payment form.

Water Tank Tax Deduction: Can You Claim a Water Tank on Tax?

A water tank may be tax-deductible if it is used for business, farming or another income-producing purpose. A private household rainwater tank used only for personal home and garden use is generally different from a business asset.

A tax deduction may apply where the tank is used for a farm or primary production business, livestock water storage, irrigation support, a rural business, a commercial yard, a nursery or landscaping business, a trades business, a workshop or manufacturing site, or a rental or business property, depending on use and accountant advice.

Example	Cost/claim	Potential saving explanation
Residential rebate	Tank cost $2,500, local rebate $800	Estimated out-of-pocket tank cost after rebate: $1,700
Small business tax deduction	Tank costs $8,000, 100% business use, 25% tax rate	Estimated tax saving: $2,000
Primary producer water facility	An eligible water facility costs $18,000, 100% primary production use, 25% tax rate	Estimated tax saving: $4,500

Does a Water Tank Tax Deduction Give You the Full Cost Back?

No. A tax deduction usually reduces taxable income. It is not the same as a rebate and does not normally mean the full cost is refunded.

Tank cost	Eligible business use	Deductible amount	Example tax rate	Estimated tax savings
$5,000	100%	$5,000	25%	$1,250
$8,000	80%	$6,400	25%	$1,600
$15,000	100%	$15,000	25%	$3,750
$18,000	50%	$9,000	25%	$2,250

Simple estimate: Estimated tax saving = eligible deductible amount x tax rate.

Instant Asset Write-Off: Can a Business Claim a Water Tank Immediately?

An eligible small business may be able to claim the business-use portion of a water tank immediately if the tank meets the instant asset write-off rules for that income year. For the 2025-26 income year, the ATO states that the instant asset write-off limit has been temporarily increased from $1,000 to $20,000.

• The business is eligible
• The tank is used for business purposes
• The asset cost is under the relevant threshold
• The tank is first used or installed, ready for use in the correct income year
• Only the business-use portion is claimed
• The business keeps the required records

ATO instant asset write-off guidance

Can You Buy a Water Tank Before 30 June and Claim It?

Possibly, but buying the tank is not always enough. For depreciation and instant asset write-off rules, timing often depends on when the asset is first used or installed, ready for use. Speak with your accountant before relying on a 30 June purchase deadline, especially if the tank still needs delivery, plumbing, fittings, installation or commissioning.

Water Tank Depreciation: When Does It Apply?

Tax depreciation may apply when a water tank is used as a business asset, and the full cost cannot be claimed immediately.

This may happen when the asset is above the instant asset write-off threshold, the business is not eligible for simplified depreciation, the tank is only partly used for business, the tank forms part of a larger water system, or your accountant recommends depreciation over time.

Can You Claim the Tank, Pump and Installation Together?

Possibly, but it depends on how the system is used and how your accountant treats each cost. A tank, pump, plumbing, fittings, delivery and installation may not always be treated the same way. If the system is used partly for private and partly for business purposes, the claim may need to be apportioned.

If you need a complete water setup, check our tank and pump packages and water pumps

Primary Producer Water Facility Deduction: Can Farmers Claim Water Tanks?

Primary producers may have a stronger tax pathway than ordinary household buyers. The ATO says primary producers and irrigation water providers can immediately deduct eligible costs of water facilities. ATO: Primary Producers Water Facility deduction.

A water facility may include infrastructure for conserving or conveying water for primary production. This may be relevant for water tanks, pumps, pipes, troughs, dams, bores, irrigation channels and farm water transfer systems.

• Water tanks
• Pumps
• Pipes
• Troughs
• Dams
• Bores
•  Irrigation channels
• Farm water transfer systems

Can Farmers Get Water Tank Grants and Tax Deductions?

Possibly, but farmers should get advice before claiming both. A grant, rebate or reimbursement may affect the net cost or tax treatment of the water tank system.

Can a Rebate or Tax Deduction Help You Buy a Bigger Water Tank?

Buyer type	Possible saving pathway	Tank size to consider
Residential homeowner	Local council or water authority rebate	2,000L to 10,000L
Small garden or courtyard owner	Local rebate if the minimum size is met	1,000L to 3,000L
Larger household	Higher rebate tier, where available	5,000L to 15,000L
Rural residential property	Rebate, pump package or larger storage planning	10,000L to 25,000L
Small business	Tax deduction, depreciation or instant asset write-off	Depends on business use and asset cost
Farm or primary producer	Water facility deduction, drought grant or depreciation	10,000L to 47,750L plus

Tankworld supplies water tanks from 330 litres to over 47,750 litres, giving homeowners, businesses and rural properties options for small spaces, larger households, farms and commercial water storage needs.

Documents to Keep Before You Claim

• Tank tax invoice
• Payment receipt
• Tank size and product details
• Delivery documents
• Installation invoice
• Licensed plumber declaration or compliance certificate, if required
• Pump and fittings invoices
• Photos of the installed tank
• Rates notice or proof of address
• Business-use notes
• Farm-use notes
• Grant approval or rebate approval
• Accountant’s advice or depreciation schedule

How to Get a Water Tank for Less

1. Check rebates before purchase
2. Choose the right size for the program
3. Ask about plumbing requirements
4. Check if BASIX or building rules affect eligibility
5. Ask your accountant before 30 June
6. Keep all documents
7. Think beyond the cheapest tank
8. Consider a tank and pump package

What Size Water Tank Should You Choose?

Tank size	Best suited for
1,000L to 2,000L	Small homes, gardens, town blocks and tight spaces
3,000L to 5,000L	Gardens, outdoor cleaning and small household use
10,000L	Larger homes, rural residential properties and bigger gardens use
15,000L to 25,000L	Rural homes, acreage, livestock and larger storage needs
25,000L plus	Farms, large rural properties, commercial water storage and higher water demand
47,750L plus	Large-scale rural, farm and business water storage

Final Thoughts

A water tank can be a practical investment for your home, business, or farm, but the best way to reduce costs depends on your situation.

Homeowners should start by checking their local council or water authority for any current rainwater tank rebates. Business owners may need to speak with an accountant about depreciation or instant asset write-off options. Farmers and primary producers should review both tax rules and any current drought or water infrastructure grants that may apply.

Most importantly, check eligibility before you buy. The right tank size, installation method and paperwork can make a big difference.

Ready to compare water tank options? Browse Tankworld’s Rainwater tanks or contact the Tankworld team for practical help choosing the right size for your home, business or rural property.

FAQs

Can I claim a water tank on tax?

You may be able to claim a water tank on your taxes if it is used for business, farming, or another income-producing purpose. A private household water tank used only for personal home or garden use is generally not claimed as a business tax deduction.

Is a water tank a depreciating asset?

A water tank used for business or income-producing purposes may be treated as a depreciating asset. Depending on the business, asset cost and tax rules, it may be depreciated over time or claimed under simplified depreciation rules.

Can farmers claim water tanks as a tax deduction?

Primary producers may be able to claim eligible water facilities, including some water tanks used to conserve or convey water for primary production. The ATO states that primary producers and irrigation water providers can immediately deduct eligible costs of water facilities.

What is the instant asset write-off for water tanks?

The instant asset write-off may allow eligible small businesses to immediately deduct the business-use portion of an eligible asset under the relevant threshold. For the 2025-26 income year, the ATO lists a temporary increase of the instant asset write-off limit from $1,000 to $20,000.

Does a tax deduction mean I get the full cost of the water tank back?

No. A tax deduction usually reduces taxable income. For example, if an eligible business claims a $10,000 deduction and the tax rate is 25%, the estimated tax saving may be $2,500, not $10,000.

Are water tank rebates available in New South Wales?

Yes, some local rebates are available in New South Wales, but eligibility depends on the local council or water authority. Rous County Council and Armidale Regional Council are examples of current rebate programs with specific rules and tank size requirements.

Are water tank rebates available in Victoria?

Victoria currently appears to have more targeted water tank support, including bushfire recovery, water tank cleaning, rainwater tank replacement and drought support for eligible farmers. It does not appear to be a broad statewide household rainwater tank rebate available to every Victorian homeowner, based on the official sources currently checked.

Are water tank rebates available in South Australia?

Some South Australian councils offer rainwater tank rebates or sustainability subsidies. The City of West Torrens and the City of Mitcham currently list programs that may support eligible rainwater tank purchases.

What size water tank do I need for a rebate?

Many rebate programs require at least 2,000 litres, but some council programs accept smaller tanks. City of West Torrens lists a minimum tank capacity of 1,000 litres, while Rous County Council lists a minimum of 2,000 litres.

Can I claim a rebate if the tank is required by BASIX?

Not always. Some rebate programs do not cover tank volume or internal connections already required by BASIX or development approval. Always check the relevant program rules before buying.

Do I need a plumber for a water tank rebate?

Some programs require a licensed plumber, especially where the tank is connected to internal plumbing. Check your local council or water authority requirements before installation.

Can I claim both a rebate and a tax deduction?

Possibly, but you should get an accountant’s advice. A rebate, grant or reimbursement may affect the net cost or deductible amount. Keep all records and ask your accountant how the rebate should be treated.