Document ID: chunk:federal_register_of_legislation:C2025C00029:section:4:p53
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 4 (pt 53/95)
Character Range: 5682359–5684847

the *registered emissions units you *held at the end of the income year means that the value of the units is the *market value of the units at the end of the income year.

420‑55  Valuation method for first income year at the end of which you held registered emissions units

Scope
 (1) This section applies if:
 (a) you *held one or more *registered emissions units at the end of an income year; and
 (b) the income year is the first income year at the end of which you held one or more registered emissions units.

Choice of method
 (2) You may choose one of the following methods:
 (a) the *FIFO cost method;
 (b) the *actual cost method;
 (c) the *market value method;
for working out the value of the *registered emissions units you *held at the end of the income year.

FIFO cost method applies if no choice made
 (3) If you do not make a choice under subsection (2) for the income year, the value of the *registered emissions units you *held at the end of the income year is worked out using the *FIFO cost method.

Time for making choice
 (4) You must make a choice under subsection (2) before you lodge your *income tax return for the income year for which you make the choice.

No revocation of choice
 (5) A choice made under subsection (2) cannot be revoked.

420‑57  Valuation method for later income years at the end of which you held registered emissions units

Scope
 (1) This section applies if:
 (a) you *held one or more *registered emissions units at the end of an income year (the current income year); and
 (b) the current income year is not the first income year at the end of which you held one or more registered emissions units.

Choice of method
 (2) You may choose one of the following methods:
 (a) the *FIFO cost method;
 (b) the *actual cost method;
 (c) the *market value method;
for working out the value of the *registered emissions units you *held at the end of the current income year.

Previous method applies if no choice made
 (3) If you do not make a choice under subsection (2) for the current income year, the value of the *registered emissions units you *held at the end of the current income year is worked out using the method that applied to the most recent income year at the end of which you held one or more registered emissions units.

Limitation on choice—before 2015‑16 income year
 (4) If the current income year is before the 2015‑16 income year, you must not make a choice under subsection (2) for the current income year if you have