Published on 01 Nov 11
by "TAXATION IN AUSTRALIA" JOURNAL ARTICLE
A package of Bills to implement the Commonwealth government's carbon pricing system or mechanism, as part of the government's climate change plan, has been introduced into the Commonwealth Parliament. The plan, if enacted, will have effect generally from 1 July 2012. Quite apart from the direct aspects of the system, the legislation makes extensive amendments to income tax laws. Clearly, the plan and the tax implications are vast; there is much legislation that tax practitioners will need to understand, and in a relatively short period of time. Although some of the income tax concepts are based on established rules (eg trading stock), many aspects of the income tax rules are unfamiliar due to the new aspects of the plan.
In this article, the author first presents a summary of the key aspects of the plan. The article then considers the proposed income tax impacts and some of the uncertain tax outcomes arising from the new rules.
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