Commonwealth Consolidated Acts

[Index] [Table] [Search] [Search this Act] [Notes] [Noteup] [Previous] [Next] [Download] [Help]

INCOME TAX ASSESSMENT ACT 1997 - SECT 420.15

What you can deduct

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

Timing

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

Australian carbon credit units

             (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

             (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.



AustLII: Copyright Policy | Disclaimers | Privacy Policy | Feedback