1Income Tax Assessment (Environmental and Natural Resource Management in relation to the Establishment of Trees for the purposes of Carbon Sequestration) Guidelines 2018

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Income Tax Assessment (Environmental and Natural Resource Management in relation to the Establishment of Trees for the purposes of Carbon Sequestration) Guidelines 2018

I, Melissa Price, Minister for the Environment, make the following legislative instrument.

Dated 12 November 2018

Melissa Price

Minister for the Environment

Contents

1 Name 3

2 Commencement 3

3 Authority 3

4 Requirements 3

5 Repeal 3

Schedule 1—Environmental and Natural Resource Management Guidelines in relation to the establishment of trees for the purposes of carbon sequestration 4

1 Name

This instrument is the Income Tax Assessment (Environmental and Natural Resource Management in relation to the Establishment of Trees for the purposes of Carbon Sequestration) Guidelines 2018.

2 Commencement

This instrument commences on the day after registration.

3 Authority

This instrument is made under subsection 40-1010(3) of the Income Tax Assessment Act 1997.

4 Requirements

For the purpose of paragraph 40-1010(2)(d) of the Income Tax Assessment Act 1997, the establishment of trees meets the requirements of guidelines mentioned in that paragraph if:

(a) the trees are established as part of an eligible offsets project within the meaning of the Carbon Credits (Carbon Farming Initiative) Act 2011; or

(b) the establishment of the trees complies with the guidelines set out in Schedule 1.

5 Repeal

The Environmental and Natural Resource Management Guidelines in relation to the establishment of trees for the purposes of carbon sequestration made under subsection 40-1010(3) of the Income Tax Assessment Act 1997 on 1 December 2008 are repealed.

Schedule 1—Environmental and Natural Resource Management Guidelines in relation to the Establishment of Trees for the purposes of Carbon Sequestration

[1] Carbon sink forest establishment should be based on regionally applicable best practice approaches for achieving multiple land and water environmental benefits.

(1) Compliance with this guideline may be achieved by one or more of the following as relevant to the project:

(a) avoiding clearing land of remnant native vegetation as determined by the relevant state or territory legislation;

(b) taking into account features of plantation and forestry best practice guides (such as state and territory codes of practice) relevant to carbon sink forests;