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 420-15   What you can deduct  

420-15(1)    
You can deduct expenditure to the extent that you incur it in becoming the *holder of a *registered emissions unit.

Timing

420-15(2)    
You deduct the expenditure in the income year in which you start to *hold the *registered emissions unit.

420-15(3)    
(Repealed by No 83 of 2014)

Australian carbon credit units

420-15(4)    
You cannot deduct under this section expenditure you incur in becoming the *holder of an *Australian carbon credit unit issued to you in accordance with the Carbon Credits (Carbon Farming Initiative) Act 2011 unless you incur the expenditure in preparing or lodging:

(a) an application for a certificate of entitlement (within the meaning of that Act); or

(b) an offsets report (within the meaning of that Act).

No deduction if sale proceeds would not be assessable

420-15(5)    
You cannot deduct under this section expenditure you incur in becoming the *holder of a *registered emissions unit if, 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 .

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.