CO2 Group Limited (CO2) today applauded changes to the taxation arrangements for carbon sinks, saying that the amendments will assist in attracting investment to carbon sink projects across Australia.
The proposed May 2007 Budget tax arrangements for carbon sink developments were passed by the Australian Federal Government.
As at 1 July 2007, investors in qualifying forestry carbon sinks developments will be able to utilise the horticulture taxation arrangements, with immediate deductibility for the first five years, as an incentive to invest in carbon credits.
CO2’s Chief Executive Officer Mr Andrew Grant said: “This amendment of the Taxation Act for forest carbon sinks has finally removed the uncertainty surrounding the tax deductibility for forest carbon sink programs for both corporate Australia and the forest carbon sink industry.”
“The amendment reduces the cost of establishing dedicated forest carbon sinks and will help to drive further investment in carbon sink projects,” said Mr Grant.
“Further, the release of the Federal Government’s Green Paper on the Australian Emission Trading Scheme (AETS) design, which is expected to be released next month, will be an important step forward for the carbon sequestration industry.
“Existing clients and potential new clients have been waiting to see the details of the Green Paper and the proposed form of the AETS before committing to new significant forest carbon sink projects,” said Mr Grant.
“CO2 believes that these two significant events will result in forest carbon sinks playing a significant role in early greenhouse gas abatement actions by corporate Australia prior to, and on commencement of, an AETS.”
The AETS remains on track to commence in 2010.
Andrew Grant: CEO, CO2 Group Limited
For more information contact:
Elise Margaritis: Marketing and Communications Manager, CO2 Australia Limited
T: (03) 9928 5111