Carbon sink forests

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This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

End of attention

You can claim a deduction, subject to certain conditions for the expenditure incurred 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 expenditure you incur in 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 expenditure incurred in 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.