Clean Energy (Consequential Amendments) Act 2011 (132 of 2011)

Schedule 2   Taxation amendments

Part 2   Amendments commencing at the same time as section 3 of the Clean Energy Act 2011 commences

Income Tax Assessment Act 1997

15   Before section 104-210

Insert:

104-205 Incoming international transfer of emissions unit: CGT event K1

(1) CGT event K1 happens if:

(a) any of the following conditions is satisfied:

(i) a*carbon unit is transferred from your foreign account (within the meaning of theClean Energy Act 2011) to your Registry account (within the meaning of theAustralian National Registry of Emissions Units Act 2011) or your nominee's Registry account (within the meaning of theAustralian National Registry of Emissions Units Act 2011);

(ii) a*carbon unit is transferred from your nominee's foreign account (within the meaning of theClean Energy Act 2011) to your Registry account (within the meaning of theAustralian National Registry of Emissions Units Act 2011) or your nominee's Registry account (within the meaning of theAustralian National Registry of Emissions Units Act 2011);

(iii) an*international emissions unit is transferred from your foreign account (within the meaning of theAustralian National Registry of Emissions Units Act 2011) to your Registry account (within the meaning of that Act) or your nominee's Registry account (within the meaning of that Act);

(iv) an*international emissions unit is transferred from your nominee's foreign account (within the meaning of theAustralian National Registry of Emissions Units Act 2011) to your Registry account (within the meaning of that Act) or your nominee's Registry account (within the meaning of that Act);

(v) an*Australian carbon credit unit is transferred from your foreign account (within the meaning of theCarbon Credits (Carbon Farming Initiative) Act 2011) to your Registry account (within the meaning of theAustralian National Registry of Emissions Units Act 2011) or your nominee's Registry account (within the meaning of theAustralian National Registry of Emissions Units Act 2011);

(vi) an*Australian carbon credit unit is transferred from your nominee's foreign account (within the meaning of theCarbon Credits (Carbon Farming Initiative) Act 2011) to your Registry account (within the meaning of theAustralian National Registry of Emissions Units Act 2011) or your nominee's Registry account (within the meaning of theAustralian National Registry of Emissions Units Act 2011); and

(b) as a result of the transfer, you start to*hold the unit as a*registered emissions unit; and

(c) just before the transfer, the unit was neither your*trading stock nor your*revenue asset.

(2) The time of the event is when you start to*hold the unit as a*registered emissions unit.

(3) You make a capital gain if the unit's*market value (just before you started to*hold the unit as a*registered emissions unit) ismore than its*cost base. You make a capital loss if that market value isless than its*reduced cost base.