• Carbon sink forests

    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 in Carbon sink forests.

    Last modified: 04 Mar 2016QC 28182