Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-50 - CLIMATE CHANGE  

Division 420 - Registered emissions units  

Subdivision 420-A - Registered emissions units  

SECTION 420-13  

420-13   Meaning of primary producer registered emissions unit  
A *registered emissions unit you start to *hold, hold or cease to hold is a primary producer registered emissions unit if:

(a)    the unit is an *Australian carbon credit unit; and

(b)    you are an individual; and

(c)    your holding of the unit starts on or after 1 July 2022 because the unit:

(i) is issued to you under the Carbon Credits (Carbon Farming Initiative) Act 2011 in relation to an eligible offsets project (within the meaning of that Act); or

(ii) is transferred to you by a *carbon service provider that was holding the unit because the unit was issued to the provider on or after 1 July 2022 under that Act in relation to such a project; and

(d)    at all times while the project is carried on, a *primary production business is carried on:

(i) in the same area as the project; or

(ii) in an area connected to an area in which the project is carried on; and

(e)    at all times while the project is carried on, you are:

(i) carrying on a primary production business covered by paragraph (d) ; or

(ii) a beneficiary of a trust that is carrying on a primary production business covered by paragraph (d); or

(iii) a partner in a partnership that is carrying on a primary production business covered by paragraph (d).

Note 1:

If you cease to hold the registered emissions unit, the unit is not a primary producer registered emissions unit for any new holder of the unit (see paragraph (c) ).

Note 2:

A consequence of paragraph (c) is that the unit will not be a primary producer registered emissions unit for you for a subsequent holding of it. That is, if after disposing of the unit you later reacquire it.

Note 3:

Different subparagraphs of paragraph (e) may apply to you at different times.