Document ID: chunk:federal_register_of_legislation:C2023C00080:clause:2_28:p11
Version: federal_register_of_legislation:C2023C00080
Segment Type: clause
Provision Reference: sch 2 cl 28 (pt 11/16)
Character Range: 221625–224241

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.
Note: 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.

420‑50  Value of registered emissions units at start of income year
 (1) The value of a *registered emissions unit you *held at the start of an income year is the same amount at which it was taken into account under this Subdivision at the end of the last income year.
 (2) The value of the unit is a nil amount if the unit was not taken into account under this Subdivision at the end of the last income year.

420‑51  Valuation methods
 (1) The value of a *registered emissions unit you *held at the end of an income year is worked out using one of the following methods:
 (a) the *FIFO cost method;
 (b) the *actual cost method;
 (c) the *market value method.
Sections 420‑55 and 420‑57 tell you which method applies.
 (2) This section has effect subject to section 420‑58 (certain free carbon units).

420‑52  FIFO cost method of working out the value of units
  The FIFO cost method for working out the *value of the *registered emissions units you *held at the end of an income year means that the value of the units is the *cost of the registered emissions units, and, for the purposes of the application of this Subdivision to you for the income year:
 (a) if any of the registered emissions units are:
 (i) *carbon units that have a *vintage year that is the same as, or earlier than, the financial year to which the income year relates; or
 (ii) eligible international emissions units (within the meaning of the Australian National Registry of Emissions Units Act 2011); or
 (iii) *Australian carbon credit units;
  you must account for those units on a first‑in first‑out basis; and
 (b) if:
 (i) any of the registered emissions units are carbon units that have the same vintage year; and
 (ii) that vintage year is later than the financial year to which the income year relates;
  you must account for those units on a first‑in first‑out basis; and
 (c) if any of the registered emissions units are *Kyoto units that are not eligible international emissions units (within the meaning of the Australian National Registry of Emissions Units Act 2011)—you must account for those units on a first‑in first‑out basis.

420‑53  Actual cost method of working out the value of units
  The actual cost method for working out the value of the *registered emissions