Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-50 - CLIMATE CHANGE  

Division 420 - Registered emissions units  

Subdivision 420-B - Acquiring registered emissions units  

SECTION 420-22  

420-22   Becoming taxable in Australia on the proceeds of sale of registered emissions units  

If:

(a) you start to *hold a *registered emissions unit at a particular time; and

(b) assuming that you had sold the unit to someone else immediately after you started to hold the unit, the proceeds of the sale would not have been included in your assessable income under section 420-25 ; and

(c) you hold the unit until a later time (the taxable status commencement time ), where the following conditions are satisfied:

(i) assuming that you had sold the unit to someone else immediately before the taxable status commencement time, the proceeds of the sale would not have been included in your assessable income under section 420-25 ;

(ii) assuming that you had sold the unit to someone else at the taxable status commencement time, the proceeds of the sale would have been included in your assessable income under section 420-25 ;

you are treated as if:

(d) immediately after the taxable status commencement time, you had bought the unit from someone else for its *market value; and

(e) you had started to hold the unit immediately after the taxable status commencement time instead of at the time mentioned in paragraph (a).

Note:

Under the International Tax Agreements Act 1953 , for some foreign residents, the proceeds of the sale of a registered emissions unit are not assessable income in Australia.