Commonwealth Consolidated Acts Commonwealth Consolidated ActsA * registered emissions unit you start to * hold, hold or cease to hold is a primary producer registered emissions unit if:
(a) the unit is an * Australian carbon credit unit; and
(b) you are an individual; and
(c) your holding of the unit starts on or after 1 July 2022 because the unit:
(i) is issued to you under the Carbon Credits (Carbon Farming Initiative) Act 2011 in relation to an eligible offsets project (within the meaning of that Act); or
(ii) is transferred to you by a * carbon service provider that was holding the unit because the unit was issued to the provider on or after 1 July 2022 under that Act in relation to such a project; and
(d) at all times while the project is carried on, a * primary production business is carried on:
(i) in the same area as the project; or
(ii) in an area connected to an area in which the project is carried on; and
(e) at all times while the project is carried on, you are:
(i) carrying on a primary production business covered by paragraph (d); or
(ii) a beneficiary of a trust that is carrying on a primary production business covered by paragraph (d); or
(iii) a partner in a partnership that is carrying on a primary production business covered by paragraph (d).
Note 1: If you cease to hold the registered emissions unit, the unit is not a primary producer registered emissions unit for any new holder of the unit (see paragraph (c)).
Note 2: A consequence of paragraph (c) is that the unit will not be a primary producer registered emissions unit for you for a subsequent holding of it. That is, if after disposing of the unit you later reacquire it.
Note 3: Different subparagraphs of paragraph (e) may apply to you at different times.
Table of sections
420 - 15 What you can deduct
420 - 20 Non - arm's length transactions and transactions with associates
420 - 21 Incoming international transfers of emissions units
420 - 22 Becoming taxable in Australia on the proceeds of sale of registered emissions units