Clean Energy (Charges—Excise) Amendment Act 2012
No. 199, 2012
An Act to amend the Clean Energy (Charges—Excise) Act 2011, and for related purposes
Contents
1 Short title
2 Commencement
3 Schedule(s)
Schedule 1—Amendments
Clean Energy (Charges—Excise) Act 2011
Clean Energy (Charges—Excise) Amendment Act 2012
No. 199, 2012
An Act to amend the Clean Energy (Charges—Excise) 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—Excise) 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Note: This table relates only to the provisions of this Act as originally enacted.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Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.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—Excise) 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—Excise) Amendment Act 2012 is an Act enacted by the Parliament of Australia to amend the Clean Energy (Charges—Excise) Act 2011. This legislation addresses specific issues related to the excise charges applicable to certain clean energy activities, aiming to refine the framework for levying these charges. The Act seeks to ensure that the charge imposed on eligible international emissions units reflects the appropriate economic value, thereby aligning the legislative provisions more closely with the intended policy objectives of the Clean Energy Act. The policy objective of this amendment is to provide the Minister with the flexibility to set reserve charge amounts for auctions of eligible international emissions units, ensuring that the charges levied are both fair and effective in supporting the broader clean energy initiatives.
The Clean Energy (Charges—Excise) Amendment Act 2012 amends the Clean Energy (Charges—Excise) Act 2011 by repealing the definition of "eligible international emissions unit" and modifying the conditions under which certain charges are imposed. Specifically, it introduces a mechanism for the Minister to determine reserve charge amounts for auctions, ensuring that the charges reflect the true market value of these units. This amendment was designed to address gaps in the original Act, providing a more robust and adaptable framework for the imposition of clean energy charges.
Scope and Application
The Clean Energy (Charges—Excise) Amendment Act 2012 is an Act of the Parliament of Australia that amends the Clean Energy (Charges—Excise) Act 2011. This legislation applies to entities involved in the trading and issuing of eligible international emissions units, which are units used in the Clean Energy Scheme. The Act specifies that the amendments will apply to transactions and conduct related to the Clean Energy Scheme, particularly in relation to the auction of these units. The geographic scope of this Act is national, as it operates within the framework of the Commonwealth of Australia. The Act does not specify any exclusions or exemptions, but it does provide for the Minister to determine the reserve charge amount in relation to specified auctions via legislative instruments. The Act came into effect on 12 December 2012, with specific provisions related to the amendments commencing on 14 December 2012. This amendment ensures that the auction process for international emissions units is subject to a reserve charge amount, enhancing the financial integrity of the Clean Energy Scheme.
Key Provisions
The Clean Energy (Charges—Excise) Amendment Act 2012 (C2012A00199) amends the Clean Energy (Charges—Excise) Act 2011, introducing specific changes to the definition and application of certain charges. Section 3 of the amending Act repeals the definition of "eligible international emissions unit" from the 2011 Act. This change likely impacts how units are recognised and valued in the context of emissions trading. Section 8(3) of the 2011 Act is modified to ensure that a person's willingness to pay, as indicated during an auction, must not be less than the reserve charge amount if one exists. This adjustment aims to maintain a minimum threshold for the charges related to the issuance of units, ensuring that the reserve charge is respected during auctions. Additionally, subsection 8(4A) is introduced, granting the Minister the authority to determine, via a legislative instrument, the reserve charge amount for specified auctions. This provision enhances the Minister's ability to manage and adjust auction-related charges dynamically.
The Clean Energy (Charges—Excise) Amendment Act 2012 imposes several obligations on entities involved in emissions trading and auction processes. The repeal of the definition of "eligible international emissions unit" requires these entities to align with the new criteria for unit eligibility, ensuring compliance with the updated legislative framework. Furthermore, entities participating in auctions must ensure their declared willingness to pay meets or exceeds the reserve charge amount, as stipulated in the amended Section 8(3). This requirement aims to maintain the integrity and fairness of the auction process. Additionally, the introduction of subsection 8(4A) places an obligation on the Minister to determine the reserve charge amount for specified auctions, necessitating the issuance of legislative instruments to clarify these amounts and provide certainty in the auction process.
The Clean Energy (Charges—Excise) Amendment Act 2012 does not explicitly outline specific offences or penalties for breaches of its provisions. However, the underlying Clean Energy (Charges—Excise) Act 2011 may include penalties for non-compliance with its requirements. Typically, breaches of excise-related legislation in Australia can result in civil or criminal penalties, depending on the severity and intent of the breach. For instance, civil penalties may include fines up to several thousand Australian dollars, while criminal penalties could involve more severe fines and even imprisonment. These consequences underscore the importance of adhering to the legislative requirements to avoid potential legal repercussions.