Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) You can deduct the amount worked out under subsection (2) for an income year if:
(a) you or another entity incurred capital expenditure that is covered under section 40 - 1010 in relation to particular trees; and
(b) you use the land occupied by the trees for the primary and principal purpose of * carbon sequestration by the trees; and
(c) the trees are destroyed during the income year; and
(d) you satisfy a condition in subsection 40 - 1005(5) for the trees just before they are destroyed.
(2) Work out the amount of the deduction as follows:
Method statement
Step 1. Work out the total of the amounts you could have deducted under this Subdivision in relation to the trees for the period:
(a) starting on the first day of the income year in which the trees are established; and
(b) ending when the trees were destroyed;
assuming that, during that period, you satisfied a condition in the table in subsection 40 - 1005(5).
Step 2. Subtract from the expenditure that is covered under section 40 - 1010 in relation to the trees:
(a) the result from step 1; and
(b) any amount you received (under an insurance policy or otherwise) for the destruction.
The remaining amount (if positive) is your deduction under subsection (1).
(3) This deduction is in addition to any deduction for the income year under section 40 - 1005.