Eligible individual primary producers can now treat certain income they receive on or after 1 July 2022 from eligible ACCUs and carbon abatement activities as primary production income for the purposes of the Farm Management Deposit Scheme and Tax Averaging rules.
This means that:
- you can reduce your taxable income in years of good cash flow and draw on that income in years of reduced cash flow
- you’re able to access income tax averaging, which allows you to even out your income tax liability from year to year so you’re less affected by income changes.
In addition, holders of eligible ACCUs will be taxed only on their disposal, and are not assessed on the change in the value of those eligible ACCUs at the end of each income year they are held.
Remember, registered tax agents like the Tax Champions at Paris Financial can help you with your tax, get in touch today!
Source: ATO Newsroom