Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-50 - CLIMATE CHANGE  

Division 420 - Registered emissions units  

Subdivision 420-D - Accounting for registered emissions units you hold at the start or end of the income year  

SECTION 420-57   Valuation method for later income years at the end of which you held registered emissions units  

Scope

420-57(1)    
This section applies if:

(a) you *held one or more *registered emissions units at the end of an income year (the current income year ); and

(b) the current income year is not the first income year at the end of which you held one or more registered emissions units.

Choice of method

420-57(2)    
You may choose one of the following methods:

(a) the *FIFO cost method;

(b) the *actual cost method;

(c) the *market value method;

for working out the value of the *registered emissions units you *held at the end of the current income year.

Previous method applies if no choice made

420-57(3)    
If you do not make a choice under subsection (2) for the current income year, the value of the *registered emissions units you *held at the end of the current income year is worked out using the method that applied to the most recent income year at the end of which you held one or more registered emissions units.

Limitation on choice - before 2015-16 income year

420-57(4)    
If the current income year is before the 2015-16 income year, you must not make a choice under subsection (2) for the current income year if you have previously made a choice under that subsection for an earlier income year.

Limitation on choice - 2015-16 income year or a later income year

420-57(5)    
If the current income year is:

(a) the 2015-16 income year; or

(b) a later income year;

you must not make a choice under subsection (2) for the current income year unless:

(c) the same method applied for each of the 4 most recent income years at the end of which you *held one or more *registered emissions units; and

(d) the method mentioned in paragraph (c) is different from the method to which your choice for the current income year relates.

Limitation on choice - change from FIFO cost method to actual cost method

420-57(6)    
You must not choose under subsection (2) the *actual cost method for the current income year if the *FIFO cost method applied for the most recent income year at the end of which you *held one or more *registered emissions units.

Time for making choice

420-57(7)    
You must make a choice under subsection (2) before you lodge your *income tax return for the income year for which you make the choice.

No revocation of choice

420-57(8)    
A choice made under subsection (2) cannot be revoked.

420-57(9)    
(Repealed by No 83 of 2014)