“Deferring the taxation point until the point of sale for eligible individual primary producers also benefits the cash flow position of primary producers, encouraging more primary producers to increase their carbon abatement activities. “This new tax incentive will encourage primary producers to diversify their income by generating and selling ACCUs and supporting the creation of such units, as it helps to balance out other fluctuations in income derived from farming,” the bill says. The current government says making ACCUs farm income for tax purposes was a key part of its plans to reach net zero emissions by 2050. It was welcomed by both the agriculture and carbon industries at the time. It was introduced to the Senate this week and is awaiting approval.įormer agriculture minister and Nationals leader David Littleproud made the proposal to classify credits as farm income before the Coalition was voted out of government. However, a bill was introduced to Parliament last month to make changes to the way they are taxed – allowing them to be used in FMDs and only taxing them when they are sold. Holders of ACCUs are taxed based on changes in the value each year. THE Federal Government is hoping to make tax changes to allow Australian Carbon Credit Units to be classified as farm income.Ĭurrently, primary producers who sell ACCUs cannot treat the income as primary production income and therefore cannot use it in Farm Management Deposits or for income tax averaging.

Carbon health stock