Document ID: chunk:federal_register_of_legislation:C2010C00404:clause:8_6
Version: federal_register_of_legislation:C2010C00404
Segment Type: clause
Provision Reference: sch 8 cl 6
Character Range: 29985–32416

6  At the end of Division 40
Add:

Subdivision 40‑J—Capital expenditure for the establishment of trees in carbon sink forests

Guide to Subdivision 40‑J

40‑1000  What this Subdivision is about

      You can deduct amounts for capital expenditure incurred for establishing trees that meet the requirements for constituting a carbon sink forest.

Table of sections

Operative provisions

40‑1005 Deduction for expenditure for establishing trees in carbon sink forests
40‑1010 Expenditure for establishing trees in carbon sink forests
40‑1015 Carbon sequestration by trees
40‑1020 Certain expenditure disregarded
40‑1025 Non‑arm's length transactions

Operative provisions

40‑1005  Deduction for expenditure for establishing trees in carbon sink forests

 (1) You can deduct an amount for an income year if:
 (a) you incur capital expenditure that is covered under section 40‑1010 in relation to particular trees established in the income year; and
 (b) you satisfy a condition in subsection (5) for the trees when they are established.

 (2) The amount of the deduction is the amount of the expenditure.

 (3) You can deduct an amount for an income year if:
 (a) you incur capital expenditure in the income year or an earlier income year for establishing particular trees; and
 (b) that expenditure is not covered under section 40‑1010 in relation to the trees, because some or all of the trees are established after the end of the income year; and
 (c) the trees established after the end of the income year are established within 4 months after the end of the income year; and
 (d) you could deduct the amount for the income year under subsection (1) in respect of the expenditure, assuming that, for the purposes of paragraphs 40‑1010(1)(a) and (2)(a), the income year ended 4 months after it actually ended.

 (4) If:
 (a) you can deduct an amount for an income year under subsection (3) in relation to particular trees; and
 (b) you incur capital expenditure in the next income year for establishing other trees;
in determining whether you can deduct an amount under subsection (1) for the next income year in respect of the other trees, for the purposes of paragraph 40‑1010(2)(a), disregard the trees mentioned in paragraph (a).

 (5) The conditions are as follows:

Conditions for deduction for establishing trees in carbon sink forest
Item                                                                   Condition