Document ID: chunk:federal_register_of_legislation:C2025C00029:section:4:p52
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 4 (pt 52/95)
Character Range: 5680003–5682572

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
  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.

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:
 (ii) eligible international emissions units (within the meaning of the Australian National Registry of Emissions Units Act 2011); or
 (iii) *Australian carbon credit units; or
 (iv) *safeguard mechanism credit units;
  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 units you *held at the end of the income year means that the value of the units is the *cost of the units, and, for the purposes of the application of this Subdivision to you for the income year, you must not account for any of those units on a first‑in first‑out basis.

420‑54  Market value method of working out the value of units
  The market value method for working out the value of 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