Commonwealth Consolidated Acts

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INCOME TAX ASSESSMENT ACT 1997 - SECT 420.5

The 4 key features of tax accounting for registered emissions units

    The purpose of income tax accounting for registered emissions units is to produce the same tax treatment, irrespective of your purpose in acquiring or holding the registered emissions units.

    There are 4 key features:

  (1)   You bring your gross expenditure and gross proceeds to account, not your net profits and losses on disposal of a registered emissions unit.

  (2)   The gross expenditure is deductible.

  (3)   The gross proceeds are assessable income.

  (4)   You must bring to account any difference between the value of your registered emissions units held at the start and at the end of the income year. This is done in such a way that:

  (a)   any increase in value is included in assessable income; and

  (b)   any decrease in value is a deduction.

Table of sections

420 - 10   Meaning of registered emissions unit

420 - 12   Meaning of hold a registered emissions unit

420 - 13   Meaning of primary producer registered emissions unit


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