Stephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Government in the Senate) Share this | Hansard source

The government will not support the amendment moved by Senator Milne of the Australian Greens in relation to carbon sink forests. I note that the carbon sink forests measure was passed by the Senate on 17 June 2008 as it was incorporated into the Tax Laws Amendment (2008 Measures No. 2) Bill 2008. I am advised that this amendment is unworkable. For example, it is impractical to guarantee that the carbon sink forests will remain for 100 years, considering there could be multiple changes in ownership over time. Enforcement would place an unrealistic burden on the tax office and effectively result in an unlimited period of review for tax affairs, which conflicts with the situation for the majority of taxpayers, who will have their tax affairs for a particular income year finalised within four years. It also adds a further compliance burden to the businesses who seek to claim a deduction in relation to eligible expenditure. The legislation already requires that carbon sink forests align with the relevant criteria under the Kyoto protocol, and the government will shortly produce a green paper outlining the proposed arrangements for an emissions trading scheme. It is premature to legislate requirements of one type of abatement activity ahead of the release of the green paper.