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.

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