Australia has its own government-run carbon credit, the Australian carbon credit unit (ACCU), and a compliance scheme for its biggest emitters, the Safeguard Mechanism. Unusually, individuals can hold and cancel ACCUs themselves. This guide explains how, what else you can buy, and the tax and claims rules. For other countries, see our countries hub.

Australia’s compliance market (Safeguard Mechanism)

The Safeguard Mechanism applies to facilities with more than 100,000 tonnes of CO₂e of covered emissions a yearSource 6. It was reformed in 2023, and facility baselines decline steadily over timeSource 6. The scheme is aligned with the government’s targets of 43% below 2005 levels by 2030 and net zero by 2050Source 6.

A facility whose net emissions exceed its baseline must act before the 1 April compliance deadline, for example by surrendering ACCUs or Safeguard Mechanism credit units (SMCs), and a facility below its baseline can earn SMCsSource 6.

ACCUs serve two markets

The same ACCUs are bought by businesses and individuals who want to offset voluntarily, and by Safeguard facilities that need to stay below their baselinesSource 7. Our guide to voluntary vs compliance markets explains the difference.

The ACCU Scheme

Each ACCU represents one tonne of carbon dioxide equivalent stored or avoided by a projectSource 7. The Clean Energy Regulator runs the scheme, and the Department of Climate Change, Energy, the Environment and Water sets its policySource 7.

Every ACCU has a serial number, and groups are issued in blocks shown as a serial rangeSource 11. The regulator’s ACCU project and contract register lists registered projects, the units issued to them and contracts, and is updated monthlySource 10.

Buying voluntary credits in Australia

You have two routes:

  • Buy ACCUs directly. ACCUs are held in ANREU accounts, and an account holder can be an individual or an organisationSource 8. Holders and authorised representatives must pass a fit and proper person testSource 8. ANREU accounts are now managed in the regulator’s Unit and Certificate RegistrySource 9. The same registry holds Safeguard Mechanism credit units as well as ACCUsSource 9.
  • Buy from a provider. Retailers, marketplaces and brokers sell credits from Australian and international projects. Compare them in where to buy.

To find ACCUs for sale, the regulator points buyers to the Carbon Market Institute’s Carbon Marketplace and to the ACCU project registerSource 11. An account holder can then voluntarily cancel ACCUs to offset emissions; the units are removed from the account and permanently cancelledSource 11.

Reduce first, then offset

Cut what you can before you buy, and use credits for the emissions that are left. Our guide for individuals shows how to size a purchase.

Claims and tax notes

What you can say about offsets

The ACCC published “Making environmental claims: a guide for business” in December 2023Source 12. It sets out principles such as making claims that are true and accurateSource 4. If you are offsetting your impact rather than cutting emissions, the guide says to make this clear to consumers, and to take particular care when relying on a certification scheme for offsetsSource 12. It also asks businesses to check that offsets for the same emissions benefit have not been issued under multiple registriesSource 12.

The government has decided to close the Climate Active program and stop certifying businesses’ climate claims through itSource 13. Under the options consulted on in 2026, the department will not review or monitor claims, so check the consultation for the final arrangementsSource 13. The department expects to announce a final decision on the program before the end of 2026Source 13.

Whatever label a business uses, the evidence that matters is the same: which credits were retired or cancelled, how many, and where the registry record is. Ask for it before you rely on a claim, and give it when you make one.

On tax, the Clean Energy Regulator says the cost of acquiring an ACCU is tax deductible, the proceeds of selling an ACCU are assessable income on revenue account, and supplies of ACCUs are GST-freeSource 11. It refers holders to the Australian Taxation Office or an adviser. We found no official guidance on buying international voluntary credits as an individual.

How to check quality before you buy

Each Verra credit represents one tonne of CO₂e reduced or removedSource 1, and registries such as Gold Standard’s track every credit from issuance to retirementSource 2. That makes three checks possible before you pay:

  • Is it in a public registry? Ask for the registry and serial numbers, and check the credits are retired or cancelled in your name.
  • Is the method credible? The ICVCM’s Core Carbon Principles set a quality threshold, and credits that meet it can carry the CCP labelSource 3.
  • Is the seller clear? A good seller says what you are buying, what it charges and how and in whose name it retires credits.

Our guide to how to verify carbon credits shows the steps, and carbon credit scams lists the warning signs.

Article 6 deals

Australia’s 2035 NDC says it currently has no plan to engage in international cooperative approaches under Article 6 of the Paris Agreement towards its NDCSource 5. The same document sets a 2035 target of 62–70% below 2005 levelsSource 5.

For a neighbouring market, see New Zealand. For countries that have signed Article 6 agreements, see Singapore and Japan.

How to buy, step by step

  1. Step 1: Work out what to cover

    Estimate your footprint and cut what you can first.

  2. Step 2: Choose a route

    Buy ACCUs through an ANREU account, or credits from a provider.

  3. Step 3: Pick a provider or project

    Compare providers on registry serials and certificates, or find ACCU projects on the register.

  4. Step 4: Check the registry record

    Confirm the credits are retired or cancelled in your name.