Document ID: chunk:federal_register_of_legislation:C2010C00404:clause:8_3:p1
Version: federal_register_of_legislation:C2010C00404
Segment Type: clause
Provision Reference: sch 8 cl 3 (pt 1/2)
Character Range: 33399–36226

3                                                                      You:
                                                                       (a) hold a licence relating to the land occupied by the trees; and
                                                                       (b) use the land for the primary and principal purpose of *carbon sequestration by the trees, as a result of holding the licence.

40‑1010  Expenditure for establishing trees in carbon sink forests

 (1) Expenditure is covered under this section in relation to particular trees if:
 (a) the trees are established in an income year; and
 (b) you incur the expenditure in the income year or an earlier income year for establishing the trees; and
 (c) you are carrying on a *business in the income year; and
 (d) your primary and principal purpose for establishing the trees is *carbon sequestration by the trees (see section 40‑1015); and
 (e) your purposes for establishing the trees do not include any of the following:
 (i) felling the trees;
 (ii) using the trees for *commercial horticulture; and
 (f) you do not incur the expenditure under:
 (i) a *managed investment scheme; or
 (ii) a *forestry managed investment scheme; and
 (g) all of the conditions in subsection (2) are satisfied for the trees; and
 (h) you give the Commissioner, in accordance with subsection (4), a statement that:
 (i) sets out all information necessary to determine whether all of the conditions in subsection (2) are satisfied for the trees; and
 (ii) is in the *approved form.

 (2) The conditions are as follows:
 (a) at the end of the income year, the trees occupy a continuous land area in Australia of 0.2 hectares or more;
 (b) at the time the trees are established, it is more likely than not that they will:
 (i) attain a crown cover of 20% or more; and
 (ii) reach a height of at least 2 metres;
 (c) on 1 January 1990, the area occupied by the trees was clear of other trees that:
 (i) attained, or were more likely than not to attain, a crown cover of 20% or more; and
 (ii) reached, or were more likely than not to reach, a height of at least 2 metres;
 (d) the establishment of the trees meets the requirements of the guidelines mentioned in subsection (3).

 (3) The *Climate Change Minister must, by legislative instrument, make guidelines about environmental and natural resource management in relation to the establishment of trees for the purposes of *carbon sequestration.

 (4) The statement mentioned in paragraph (1)(h) is to be given to the Commissioner no later than:
 (a) if you lodge your *income tax return for the income year within 5 months after the end of the income year—the day you lodge that income tax return; or
 (b) otherwise—5 months after the end of the income year.

 (5) However, expenditure is not covered under this