Guide to depreciating assets 2008-09

Carbon sink forests

You can claim a deduction for the costs that you incur in establishing trees in a carbon sink forest.

• For such trees established in the 2007-08, 2008-09,2009-10, 2010-11 or 2011-12 income year, you can claim an immediate deduction for the costs of establishing the trees.
• For such trees established in the 2012-13 or a later income year, you can claim a maximum capital write-off rate of 7% of the costs of establishing the trees (conditions apply).

You will find the new rules in Subdivision 40-J of the Income Tax Assessment Act 1997 and further information on our website at www.ato.gov.au