Clean Energy (International Unit Surrender Charge) Act 2011

Administered by Department of Climate Change and Energy Efficiency

Legislation au C2011A00158 Not in force Act

Legislation content

 

 

 

 

 

 

Clean Energy (International Unit Surrender Charge) Act 2011

 

No. 158, 2011

 

 

 

 

 

An Act to impose a charge on the surrender of eligible international emissions units under the Clean Energy Act 2011

 

 

 

Contents

1 Short title

2 Commencement

3 Definitions

4 Crown to be bound

5 Extension to external Territories

6 Extension to exclusive economic zone and continental shelf

7 Extension to Joint Petroleum Development Area

8 Imposition of charge

9 Exemptions

10 Act does not impose a tax on property of a State

11 Regulations

 

 

 

Clean Energy (International Unit Surrender Charge) Act 2011

No. 158, 2011

 

 

 

An Act to impose a charge on the surrender of eligible international emissions units under the Clean Energy Act 2011

[Assented to 4 December 2011]

The Parliament of Australia enacts:

1  Short title

  This Act may be cited as the Clean Energy (International Unit Surrender Charge) Act 2011.

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 and 2 and anything in this Act not elsewhere covered by this table

The day this Act receives the Royal Assent.

4 December 2011

2.  Sections 3 to 11

At the same time as section 3 of the Clean Energy Act 2011 commences.

2 April 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Note:  This table relates only to the provisions of this Act as originally enacted.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  Definitions

  In this Act:

eligible financial year has the same meaning as in the Clean Energy Act 2011.

eligible international emissions unit has the same meaning as in the Clean Energy Act 2011.

Joint Petroleum Development Area has the same meaning as in the Petroleum (Timor Sea Treaty) Act 2003.

person has the same meaning as in the Clean Energy Act 2011.

surrender has the same meaning as in the Clean Energy Act 2011.

4  Crown to be bound

  This Act binds the Crown in right of each of the States, of the Australian Capital Territory, of the Northern Territory and of Norfolk Island. However, it does not bind the Crown in right of the Commonwealth.

5  Extension to external Territories

  This Act extends to every external Territory.

6  Extension to exclusive economic zone and continental shelf

  This Act extends to Australia’s exclusive economic zone and continental shelf.

7  Extension to Joint Petroleum Development Area

  This Act extends to the Joint Petroleum Development Area.

8  Imposition of charge

 (1) If a person surrenders an eligible international emissions unit in relation to:

 (a) the eligible financial year beginning on 1 July 2015; or

 (b) the eligible financial year beginning on 1 July 2016; or

 (c) the eligible financial year beginning on 1 July 2017;

charge is imposed on the surrender of the unit.

 (2) Charge imposed by subsection (1) is payable by the person.

 (3) The amount of charge imposed by subsection (1) on the surrender of a unit in relation to an eligible financial year is the amount ascertained in accordance with the regulations in relation to the eligible financial year.

 (4) The amount ascertained in accordance with the regulations must not exceed:

 (a) in the case of surrender in relation to the eligible financial year beginning on 1 July 2015—$15; or

 (b) in the case of surrender in relation to the eligible financial year beginning on 1 July 2016—$16; or

 (c) in the case of surrender in relation to the eligible financial year beginning on 1 July 2017—$17.05.

 (5) The regulations may make provision for the ascertainment of different amounts for different types of eligible international emissions units.

9  Exemptions

  The regulations may provide that charge is not imposed by this Act in such circumstances as are ascertained in accordance with the regulations.

10  Act does not impose a tax on property of a State

 (1) This Act has no effect to the extent (if any) to which it imposes a tax on property of any kind belonging to a State.

 (2) In this section, property of any kind belonging to a State has the same meaning as in section 114 of the Constitution.

11  Regulations

  The Governor‑General may make regulations prescribing matters required or permitted by this Act to be prescribed.

 

 

[Minister’s second reading speech made in—

House of Representatives on 13 September 2011

Senate on 12 October 2011]

(177/11)

 

Overview

The Clean Energy (International Unit Surrender Charge) Act 2011 was enacted by the Parliament of Australia to address the need for a financial mechanism to manage the surrender of eligible international emissions units under the Clean Energy Act 2011. This legislation imposes a charge on the surrender of such units, ensuring a structured financial approach to emissions trading and compliance with international climate agreements. The Act applies to the eligible financial years beginning on 1 July 2015, 1 July 2016, and 1 July 2017, with the charge amount varying incrementally across these years, reaching a maximum of $17.05 by 2017. The primary policy objective is to generate revenue that supports the transition to clean energy and the implementation of Australia's international emissions commitments.

Scope and Application

The Clean Energy (International Unit Surrender Charge) Act 2011 applies to the surrender of eligible international emissions units as defined under the Clean Energy Act 2011. It imposes a financial charge on persons who surrender such units in relation to specific eligible financial years, namely those beginning on 1 July 2015, 1 July 2016, and 1 July 2017. The Act binds the Crown in right of the states, Australian Capital Territory, Northern Territory, and Norfolk Island, but not the Commonwealth itself. Geographically, the Act extends to every external territory, Australia’s exclusive economic zone and continental shelf, and the Joint Petroleum Development Area. The Act does not impose a tax on property of a State and can be further regulated through subordinate instruments, which may determine the charge amounts and provide exemptions as necessary.

Key Provisions

The Clean Energy (International Unit Surrender Charge) Act 2011 (the "Act") establishes a framework for imposing a charge on the surrender of eligible international emissions units under the Clean Energy Act 2011. The Act imposes a financial charge on the surrender of eligible international emissions units for specific eligible financial years, namely those beginning on 1 July 2015, 1 July 2016, and 1 July 2017 (section 8). The amount of the charge is determined by regulations and must not exceed specified amounts: $15 for the financial year beginning 1 July 2015, $16 for the financial year beginning 1 July 2016, and $17.05 for the financial year beginning 1 July 2017 (section 8(4)). The regulations also have the power to exempt certain circumstances from the charge (section 9). The Act imposes obligations on individuals or entities who surrender eligible international emissions units in relation to the specified eligible financial years. These parties must ensure they are aware of and comply with the charge imposed by the Act (section 8). Additionally, the Act binds the Crown in right of each of the States, the Australian Capital Territory, the Northern Territory, and Norfolk Island, but does not bind the Crown in right of the Commonwealth (section 4). The Act extends to Australia’s external Territories, exclusive economic zone, continental shelf, and the Joint Petroleum Development Area (sections 5, 6, 7). Failure to comply with the requirements of the Act may result in the imposition of the charge on the surrender of eligible international emissions units. The Act does not specify criminal or civil penalties for non-compliance; however, it is clear that the charge must be paid by the person surrendering the eligible international emissions unit (section 8(2)). The Act explicitly states that it does not impose a tax on property of any kind belonging to a State, in accordance with section 114 of the Constitution (section 10). The Governor-General has the authority to make regulations necessary to implement the provisions of the Act (section 11).

Legal classification tags

Area of Law
Environmental Law
Instrument
Act
Concepts
Definitions & Interpretation
Commencement Provisions
Exemptions & Exclusions
Imposition of Charge
Regulatory Standards

Interactions

Authorises

All Versions

Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.