Emissions trading scheme amendments passed
The Climate Change Response (Emissions Trading) Amendment Act 2008 received Royal assent on 25 September 2008. This Act contains provisions dealing with the income tax treatment of the forestry sector’s transactions in emissions units.
The Act also includes provisions under which certain transactions involving emissions units are zero-rated for GST purposes. GST zero-rating was originally proposed to be dealt with in the omnibus tax bill introduced in July 2008, but was added to the Climate Change Act by Supplementary Order Paper to ensure the legislation was enacted in time for the first transactions in emissions units. Rules for the income tax treatment of emissions units outside the forestry sector remain in the July 2008 omnibus tax bill.
Full details will be discussed in a forthcoming Tax Information Bulletin.