New concessional tax treatment of carbon abatement income for primary producers
31 July 2023
From 1 July 2023, eligible individual primary producers can access tax averaging and concessional tax treatment for certain income from their eligible carbon abatement projects. They may also qualify for concessional tax treatment for Australian Carbon Credit Units (ACCUs) they receive from their eligible carbon abatement projects.
Eligible individual primary producers include:
• sole traders
• individual partners in a partnership comprised solely of individuals.
• individuals who are beneficiaries of a trust carrying on a business of primary production
This change applies to eligible income from carbon abatement projects, such as from the sale of ACCUs, first held on or after 1 July 2022, and certain income from carbon service providers who carry out carbon abatement projects for eligible primary producers.
For more information:
