Document ID: chunk:federal_register_of_legislation:C2025C00029:section:4:p43
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 4 (pt 43/95)
Character Range: 5657656–5660254

your registered emissions units held at the start and at the end of the income year. This is done in such a way that:
 (a) any increase in value is included in assessable income; and
 (b) any decrease in value is a deduction.

Subdivision 420‑A—Registered emissions units

Table of sections
420‑10 Meaning of registered emissions unit
420‑12 Meaning of hold a registered emissions unit
420‑13 Meaning of primary producer registered emissions unit

420‑10  Meaning of registered emissions unit
A registered emissions unit is:
 (b) a *Kyoto unit; or
 (d) an *Australian carbon credit unit; or
 (e) a *safeguard mechanism credit unit;
for which there is an entry in a Registry account (within the meaning of the Australian National Registry of Emissions Units Act 2011).

420‑12  Meaning of hold a registered emissions unit
 (1) You hold a *registered emissions unit if you are the entity in whose Registry account (within the meaning of the Australian National Registry of Emissions Units Act 2011) there is an entry for the unit.
 (2) However, if the entity (the nominee entity) in whose Registry account (within the meaning of the Australian National 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.

420‑13  Meaning of primary producer registered emissions unit
  A *registered emissions unit you start to *hold, hold or cease to hold is a primary producer registered emissions unit if:
 (a) the unit is an *Australian carbon credit unit; and
 (b) you are an individual; and
 (c) your holding of the unit starts on or after 1 July 2022 because the unit:
 (i) is issued to you under the Carbon Credits (Carbon Farming Initiative) Act 2011 in relation to an eligible offsets project (within the meaning of that Act); or
 (ii) is transferred to you by a *carbon service provider that was holding the unit because the unit was issued to the provider on or after 1 July 2022 under that Act in relation to such a project; and
 (d) at all times while the project is carried on, a *primary production business is carried on:
 (i) in the same area as the project; or
 (ii) in an area connected to an area in which the project is carried on; and
 (e) at all times while the project is carried on, you are:
 (i) carrying on a primary production business covered by paragraph (d); or
 (ii) a beneficiary of a trust that is carrying on a primary production business covered by paragraph (d); or
 (iii) a partner in a