Document ID: chunk:federal_register_of_legislation:C2023C00080:clause:2_28:p1
Version: federal_register_of_legislation:C2023C00080
Segment Type: clause
Provision Reference: sch 2 cl 28 (pt 1/16)
Character Range: 196417–199225

28  After Part 3‑45
Insert:

Part 3‑50—Climate change

Division 420—Registered emissions units

Table of Subdivisions
 Guide to Division 420
420‑A Registered emissions units
420‑B Acquiring registered emissions units
420‑C Disposing of registered emissions units etc.
420‑D Accounting for registered emissions units you hold at the start or end of the income year
420‑E Exclusivity of Division

Guide to Division 420

420‑1  What this Division is about

      This Division deals with amounts you can deduct, and amounts included in your assessable income, because of these situations:
         • you acquire a registered emissions unit;
         • you hold a registered emissions unit at the start or the end of the income year;
         • you dispose of a registered emissions unit.

Table of sections
420‑5 The 4 key features of tax accounting for registered emissions units

420‑5  The 4 key features of tax accounting for registered emissions units
  The purpose of income tax accounting for registered emissions units is to produce the same tax treatment, irrespective of your purpose in acquiring or holding the registered emissions units.
  There are 4 key features:
 (1) You bring your gross expenditure and gross proceeds to account, not your net profits and losses on disposal of a registered emissions unit.
 (2) The gross expenditure is deductible.
 (3) The gross proceeds are assessable income.
 (4) You must bring to account any difference between the value of your registered emissions units held at the start and at the end of the income year. This is done in such a way that:
 (a) any increase in value is included in assessable income; and
 (b) any decrease in value is a deduction.

Subdivision 420‑A—Registered emissions units

Table of sections
420‑10 Meaning of registered emissions unit
420‑12 Meaning of hold a registered emissions unit

420‑10  Meaning of registered emissions unit
A registered emissions unit is:
 (a) a *carbon unit; or
 (b) a *Kyoto unit; or
 (c) a *prescribed international unit; or
 (d) an *Australian carbon credit unit;
for which there is an entry in a Registry account (within the meaning of the Australian National Registry of Emissions Units Act 2011).

420‑12  Meaning of hold a registered emissions unit
 (1) You hold a *registered emissions unit if you are the entity in whose Registry account (within the meaning of the Australian National Registry of Emissions Units Act 2011) there is an entry for the unit.
 (2) However, if the entity (the nominee entity) in whose Registry account (within the meaning of the Australian National Registry of Emissions Units Act 2011) there is an entry for a *registered emissions unit holds the unit as nominee for another entity:
 (a) the other entity is taken to hold the unit; and
 (b) the nominee entity is taken