Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-50 - CLIMATE CHANGE  

Division 420 - Registered emissions units  

Subdivision 420-D - Accounting for registered emissions units you hold at the start or end of the income year  

SECTION 420-45   You include the value of your registered emissions units in working out your assessable income and deductions  

420-45(1)    
You compare:

(a) the * value of all * registered emissions units you * held at the start of the income year; and

(b) the value of all registered emissions units you held at the end of the income year.

Increase in value is included in assessable income

420-45(2)    
Your assessable income includes any excess of the * value at the end of the income year over the value at the start of the income year.

Decrease in value is a deduction

420-45(3)    
On the other hand, you can deduct any excess of the * value at the start of the income year over the value at the end of the income year.

Source

420-45(4)    
An amount included in your assessable income under subsection (2) is taken, for the purposes of the * income tax laws, to have a source in Australia.

Disregard value of unit if sale proceeds would not be assessable

420-45(5)    
For the purposes of this Subdivision, disregard the * value of a * registered emissions unit you * held at the end of the income year 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.