Clean Energy (Charges—Customs) Amendment Act 2012
No. 198, 2012
An Act to amend the Clean Energy (Charges—Customs) Act 2011, and for related purposes
Contents
1 Short title
2 Commencement
3 Schedule(s)
Schedule 1—Amendments
Clean Energy (Charges—Customs) Act 2011
Clean Energy (Charges—Customs) Amendment Act 2012
No. 198, 2012
An Act to amend the Clean Energy (Charges—Customs) Act 2011, and for related purposes
[Assented to 12 December 2012]
The Parliament of Australia enacts:
1 Short title
This Act may be cited as the Clean Energy (Charges—Customs) Amendment Act 2012.
2 Commencement
(1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.
Commencement information |
Column 1 | Column 2 | Column 3 |
Provision(s) | Commencement | Date/Details |
1. Sections 1 to 3 and anything in this Act not elsewhere covered by this table | The day this Act receives the Royal Assent. | 12 December 2012 |
2. Schedule 1 | At the same time as Part 1 of Schedule 1 to the Clean Energy Amendment (International Emissions Trading and Other Measures) Act 2012 commences. | 14 December 2012 |
Note: This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.
(2) Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.
3 Schedule(s)
Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.
Schedule 1—Amendments
Clean Energy (Charges—Customs) Act 2011
1 Section 3 (definition of eligible international emissions unit)
Repeal the definition.
2 Subsection 8(3)
Omit all the words from and including “so long as” to and including “that reserve charge amount”, substitute “so long as, in a case where there is a reserve charge amount in relation to the auction (see subsection (4A)), the amount the person indicated or declared, in the course of the auction, that the person would be willing to pay by way of charge for the issue of the unit is not less than that reserve charge amount”.
3 After subsection 8(4)
Insert:
(4A) The Minister may, by legislative instrument, determine that, for the purposes of subsection (3), the reserve charge amount in relation to a specified auction is the amount ascertained in accordance with the determination.
[Minister’s second reading speech made in—
House of Representatives on 19 September 2012
Senate on 11 October 2012]
Overview
The Clean Energy (Charges—Customs) Amendment Act 2012, enacted by the Parliament of Australia and assented to on 12 December 2012, serves to amend the Clean Energy (Charges—Customs) Act 2011. The primary purpose of this amendment is to address certain gaps and issues within the original Act, particularly concerning the definition and application of the reserve charge amount for eligible international emissions units in the context of auctions. The amendments were designed to ensure that the auction process for these units is conducted in a manner that aligns with updated policy objectives, particularly focusing on the reserve charge amount that bidders must meet to secure units.
The Clean Energy (Charges—Customs) Amendment Act 2012 introduces modifications to the Clean Energy (Charges—Customs) Act 2011, including the repeal of the definition of "eligible international emissions unit" and the adjustment of the conditions under which reserve charge amounts are applied during auctions. The policy objective is to streamline and clarify the auction process for international emissions units, ensuring that it operates efficiently and in accordance with the legislative intent. These changes are intended to enhance the effectiveness of the clean energy initiatives by refining the mechanisms through which international emissions units are traded and charged.
Scope and Application
The Clean Energy (Charges—Customs) Amendment Act 2012 is a legislative instrument that amends the Clean Energy (Charges—Customs) Act 2011. This Act applies to the entities and persons involved in the importation of goods that attract a Clean Energy Charge under the Clean Energy Act 2011. The Clean Energy Charge is a regulatory mechanism designed to price carbon emissions associated with imported goods that would otherwise be subject to the carbon pricing mechanism. The amendments introduced by this Act primarily affect the calculation and application of the Clean Energy Charge on such imports. The Act applies on a national level across Australia, as it is a Commonwealth Act. It includes provisions for the Minister to determine reserve charge amounts through legislative instruments, thereby extending and specifying the application of the Act. Any exclusions, exemptions, or thresholds are addressed in the Clean Energy (Charges—Customs) Act 2011 and are subject to the amendments specified in this Act.
Key Provisions
The Clean Energy (Charges—Customs) Amendment Act 2012 amends the Clean Energy (Charges—Customs) Act 2011. The main operative sections of this amendment Act include the repeal of the definition of 'eligible international emissions unit' (section 1), the modification of subsection 8(3) to include a condition related to the reserve charge amount in an auction (section 2), and the addition of a new subsection 8(4A) that allows the Minister to determine the reserve charge amount by legislative instrument (section 3). Section 1 removes the definition of 'eligible international emissions unit', which previously specified certain conditions that had to be met for an international emissions unit to be eligible. Section 2 modifies subsection 8(3) to include a new condition: the amount a person indicated or declared they were willing to pay for the issue of the unit must not be less than the reserve charge amount in the auction, if such an amount exists. Section 3 adds a new subsection 8(4A), enabling the Minister to set the reserve charge amount for a specified auction through a legislative instrument.
The Clean Energy (Charges—Customs) Amendment Act 2012 imposes several obligations and requirements on the parties it governs. Firstly, the removal of the definition of 'eligible international emissions unit' means that the criteria for eligibility are no longer strictly defined in the Act, potentially broadening the scope of what may be considered eligible. Secondly, the modification to subsection 8(3) means that during an auction, the amount a person declares they are willing to pay must meet or exceed the reserve charge amount, if one is set. This requirement ensures that auctions are conducted with a minimum threshold in mind, potentially affecting the dynamics and outcomes of such auctions. Additionally, subsection 8(4A) introduces a new administrative requirement, where the Minister can determine the reserve charge amount through a legislative instrument. This introduces a layer of flexibility and administrative oversight in setting these amounts.
The Clean Energy (Charges—Customs) Amendment Act 2012 does not explicitly outline specific offences, penalties, or civil/criminal consequences for breaches of its provisions. However, any failure to comply with the conditions set out in the modified subsection 8(3) or any improper determination of the reserve charge amount under subsection 8(4A) could potentially lead to legal consequences under the broader Clean Energy (Charges—Customs) Act 2011 or related legislation. Given that the Clean Energy (Charges—Customs) Act 2011 itself does not detail specific penalties for breaches, any enforcement actions would likely rely on the interpretation and application of the broader legal framework in which this amendment operates.