Miscellaneous Primary production 2022

Carbon farming: tax issues for primary producers

Source: Taxation In Australia Journal Article

Published Date: 1 Oct 2022


Owners of primary production land are increasingly being approached by carbon credit service companies to participate in carbon abatement projects. For many primary producers, this development represents an opportunity to generate additional cash flow by venturing surplus or marginal parts of their land into projects and/or changing to "greener" agricultural practices in order to qualify for eligible offsets projects. This article highlights some of the significant tax issues for primary producers participating in eligible offsets projects. The article not only addresses the carbon credit tax regime itself, but also some of the ancillary commercial, structuring and planning issues that primary producers are likely to encounter when participating in eligible offsets projects. It can be seen that there are a multitude of issues to be considered by primary producers, and therefore their advisers, when contemplating participating in carbon farming projects.

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Jury Jackson
Author Profile
Peter Slegers CTA

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Daniel Marateo

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Miscellaneous Primary production 2022

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