Climate change bill reported back

The Finance and Expenditure Committee has reported to Parliament on the Climate Change (Emissions Trading and Renewable Preference) Bill, introduced in December 2007. The bill introduces the Emissions Trading Scheme and amends income tax legislation to provide for the tax treatment of emission units dealt with by forest owners. The main tax changes recommended by the committee are to allow deductibility of unit purchases for owners of pre-1990 forests who do not hold the land on capital account, and to treat emission units generally as excepted financial arrangements. For more information see the bill as reported back and the Climate Change website.