Australia Plans Favorable Tax Treatment for Carbon Credit Sales

The Australian government wants feedback on its proposal to provide concessional tax treatment to certain primary producers that generate revenue from selling carbon credits.

Australia started a public consultation on Monday about its proposed legislation, which will allow primary producers to treat proceeds from the sale of carbon credit units held on or after July 1, 2022, as production income. This means producers’ credit units will be taxed at the point of sale instead of being based on changes in their value each income year.

• Stakeholders have until March 17 to respond to the consultation to amend the Income ...