Farmers get tax relief in return for supporting nationals to net zero by 2050

0

Farmers who make money selling carbon credits will get tax relief, a key measure the nationals say they got in return for supporting the government’s goal of net zero by 2050.

Federal Agriculture Minister David Littleproud said the tax relief, estimated at $100 million over four years, was one of the measures the Coalition partner was asking for in return for supporting the goal. climatic.

Mr Littleproud said income generated from the sale of carbon credits and biodiversity certificates would now be treated as primary production income for tax purposes.

The changes would also allow farmers to pay profits from the sale of credits – known as Australian Carbon Credit Units (ACCUs) – into Farm Management Deposits, a scheme to help farmers average their income.

David Littleproud says more farmers in the carbon market will help Australia meet and exceed its climate obligations.(News video)

“It will make farmers more resilient during tougher times of drought, floods and cyclones,” Mr Littleproud said.

Mr Littleproud did not say how many farmers he thinks will adopt carbon farming as a result of the tax incentive.

“There are hundreds across the country already practicing carbon farming.

“It’s hard to get into it, especially if it’s part of the Emissions Reduction Fund, and so there should be some, because if those carbon credits aren’t real, they’re not worth the paper they’re on. writings.”

The tax incentive will come into effect from July 1 and will apply to carbon credits accredited under the Emissions Reduction Fund.

It comes as the government is expected to announce the outcome of a consultation on a proposal to change the law to give the agriculture minister veto power over certain carbon-generating projects.

The government has proposed giving the Minister of Agriculture the power to reject any native vegetation project under the Emissions Reduction Fund that covers 33% of a farm or more.

The federal government pledged to reduce carbon emissions to net zero by 2050 last October after lengthy negotiations with nationals.

The Coalition’s junior partner secured unknown commitments in exchange for its support.

Space to play or pause, M to mute, left and right arrows to search, up and down arrows for volume.
Play the video.  Duration: 5 minutes 45 seconds

Can Australia reach net zero?
Share.

Comments are closed.