Concessional treatment of Australian Carbon Credit Units for primary producers

In March 2023, the Government released exposure draft legislation that will allow concessional tax treatment for certain primary producers that generate revenue from the sale of Australian Carbon Credit Units (ACCUs) and has called for submissions from interested parties.

In response, BDO has prepared a submission urging the Government to take the opportunity to expand the definition of ‘registered emission units’ under Section 420-10 of the Income Tax Assessment Act 1997 to include other types of high integrity carbon credit units. Also, to clarify the stated policy objective of the proposed measures and extend the subdivision 420-D amendment to all farmers. 


Should have any questions regarding the content of this submission, please contact your BDO tax adviser for further guidance.