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.


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