Income Tax Assessment Act 1997



Division 40 - Capital allowances  

Subdivision 40-J - Capital expenditure for the establishment of trees in carbon sink forests  

Operative provisions

SECTION 40-1030   Extra deduction for destruction of trees in carbon sink forest  

You can deduct the amount worked out under subsection (2) for an income year if:

(a) you or another entity incurred capital expenditure that is covered under section 40-1010 in relation to particular trees; and

(b) you use the land occupied by the trees for the primary and principal purpose of *carbon sequestration by the trees; and

(c) the trees are destroyed during the income year; and

(d) you satisfy a condition in subsection 40-1005(5) for the trees just before they are destroyed.

Work out the amount of the deduction as follows: Method statement

Step 1.

Work out the total of the amounts you could have deducted under this Subdivision in relation to the trees for the period:

  • (a) starting on the first day of the income year in which the trees are established; and
  • (b) ending when the trees were destroyed;
  • assuming that, during that period, you satisfied a condition in the table in subsection 40-1005(5) .

    Step 2.

    Subtract from the expenditure that is covered under section 40-1010 in relation to the trees:

  • (a) the result from step 1; and
  • (b) any amount you received (under an insurance policy or otherwise) for the destruction.
  • The remaining amount (if positive) is your deduction under subsection (1).

    This deduction is in addition to any deduction for the income year under section 40-1005 .


    Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited

    CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.

    The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.