Income Tax Assessment Act 1997
You can deduct expenditure to the extent that you incur it in becoming the *holder of a *registered emissions unit.
You deduct the expenditure in the income year in which you start to *hold the *registered emissions unit. 420-15(3)
(Repealed by No 83 of 2014)
You cannot deduct under this section expenditure you incur in becoming the *holder of an *Australian carbon credit unit issued to you in accordance with the Carbon Credits (Carbon Farming Initiative) Act 2011 unless you incur the expenditure in preparing or lodging:
(a) an application for a certificate of entitlement (within the meaning of that Act); or
(b) an offsets report (within the meaning of that Act). No deduction if sale proceeds would not be assessable 420-15(5)
You cannot deduct under this section expenditure you incur in becoming the *holder of a *registered emissions unit 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 .
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.