Document ID: chunk:federal_register_of_legislation:C2023C00080:clause:2_28:p2
Version: federal_register_of_legislation:C2023C00080
Segment Type: clause
Provision Reference: sch 2 cl 28 (pt 2/16)
Character Range: 199005–201728

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 not to hold the unit.

Subdivision 420‑B—Acquiring registered emissions units

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

420‑15  What you can deduct
 (1) You can deduct expenditure to the extent that you incur it in becoming the *holder of a *registered emissions unit.
Note: A carbon unit is an example of a registered emissions unit. You can become the holder of a carbon unit as a result of the unit being issued to you under the Clean Energy Act 2011 or as a result of your acquisition of the unit from another entity.

Timing
 (2) You deduct the expenditure in the income year in which you start to *hold the *registered emissions unit.

Free carbon units
 (3) You cannot deduct under this section expenditure you incur in becoming the *holder of a *carbon unit issued to you in accordance with:
 (a) the Jobs and Competitiveness Program (within the meaning of the Clean Energy Act 2011); or
 (b) Part 8 (coal‑fired electricity generation) of that Act.

Australian carbon credit units
 (4) You cannot deduct under this section expenditure you incur in becoming the *holder of an *Australian carbon credit unit issued to you in accordance with the Carbon Credits (Carbon Farming Initiative) Act 2011 unless you incur the expenditure in preparing or lodging:
 (a) an application for a certificate of entitlement (within the meaning of that Act); or
 (b) an offsets report (within the meaning of that Act).

No deduction if sale proceeds would not be assessable
 (5) You cannot deduct under this section expenditure you incur in becoming the *holder of a *registered emissions unit if, assuming that you had sold the 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.

420‑20  Non‑arm's length transactions and transactions with associates
 (1) If:
 (a) an entity becomes the *holder of a *registered emissions unit; and
 (b) either:
 (i) the entity and the previous holder of the unit did not deal with each other at arm's length; or
 (ii) the previous holder is the entity's