THE Federal Government is hoping to make tax changes to allow Australian Carbon Credit Units to be classified as farm income.
Currently, 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. Holders of ACCUs are taxed based on changes in the value each year.
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. It was introduced to the Senate this week…
