In the March 2022‑23 Budget, the former government announced tax changes to provide concessional tax treatment to certain primary producers that generate revenue from the sale of Australian Carbon Credit Units (ACCUs).
The government is now consulting on proposed legislation to deliver this measure.
Providing concessional tax treatment for carbon abatement income
Eligible primary producers will be able to treat the net proceeds from the sale of Australian Carbon Credit Units (ACCUs) they first held on or after 1 July 2022 as primary production income for the purposes of the Farm Management Deposit (FMD) scheme and accessing income tax averaging.
The taxing point for ACCUs held by eligible primary producers will also be set to the point of sale, instead of being taxed based on changes in the value of their ACCUs each income year.