(1) Expenditure is covered under this section in relation to particular trees if:
(a) the trees are established in an income year; and
(b) you incur or another entity incurs the expenditure in the income year or an earlier income year for establishing the trees; and
(c) the entity incurring the expenditure (the establishing entity ) is carrying on a * business in the income year; and
(d) the establishing entity's primary and principal purpose for establishing the trees is * carbon sequestration by the trees (see section 40-1015); and
(e) the establishing entity's purposes for establishing the trees do not include any of the following:
(i) felling the trees;
(ii) using the trees for * commercial horticulture; and
(f) the establishing entity does not incur the expenditure under:
(i) a * managed investment scheme; or
(ii) a * forestry managed investment scheme; and
(g) all of the conditions in subsection (2) are satisfied for the trees; and
(h) the establishing entity gives the Commissioner, in accordance with subsection (4), a statement that:
(i) sets out all information necessary to determine whether all of the conditions in subsection (2) are satisfied for the trees; and
(ii) is in the * approved form.
(2) The conditions are as follows:
(a) at the end of the income year, the trees occupy a continuous land area in Australia of 0.2 hectares or more;
(b) at the time the trees are established, it is more likely than not that they will:
(i) attain a crown cover of 20% or more; and
(ii) reach a height of at least 2 metres;
(c) on 1 January 1990, the area occupied by the trees was clear of other trees that:
(i) attained, or were more likely than not to attain, a crown cover of 20% or more; and
(ii) reached, or were more likely than not to reach, a height of at least 2 metres;
(d) the establishment of the trees meets the requirements of the guidelines mentioned in subsection (3).
(3) The * Climate Change Minister must, by legislative instrument, make guidelines about environmental and natural resource management in relation to the establishment of trees for the purposes of * carbon sequestration.
(4) The statement mentioned in paragraph (1)(h) is to be given to the Commissioner no later than:
(a) if the establishing entity lodges its * income tax return for the income year within 5 months after the end of the income year--the day the establishing entity lodges that income tax return; or
(b) otherwise--5 months after the end of the income year.
(5) However, expenditure is not covered under this section if the * Climate Change Secretary gives the Commissioner a notice under subsection (6) in relation to the trees.
(6) The * Climate Change Secretary must give the Commissioner a notice in writing under this subsection if the Climate Change Secretary is satisfied that one or more of the conditions in subsection (2) have not been satisfied for the trees.
(7) A person may apply to the * AAT for review of a decision (as defined in the Administrative Appeals Tribunal Act 1975 ) of the * Climate Change Secretary to give a notice under subsection (6).
(8) The Commissioner may give the * Climate Change Secretary a copy of the statement mentioned in paragraph (1)(h), for the purposes of subsections (5), (6) and (7).