Excise Tariff Amendment (Per-tonne Carbon Price Equivalent) Act 2012

Overview

The Excise Tariff Amendment (Per-tonne Carbon Price Equivalent) Act 2012 was enacted by the Parliament of Australia to amend the law relating to excise tariffs, specifically to address the need for a per-tonne carbon price equivalent in excise tariff calculations. This Act was introduced to provide a more accurate and consistent method for determining the carbon price equivalent in excise tariffs, which was necessary for the implementation of the carbon pricing mechanism under the Clean Energy Act 2011. The policy objective of the Act was to ensure that excise duties on certain goods were adjusted in line with the carbon price, thereby encouraging reductions in greenhouse gas emissions. The Act amends the Excise Tariff Act 1921 by redefining the term "per-tonne carbon price equivalent" and modifying the formula for calculating excise tariffs in relation to carbon emissions. The Act came into effect on 12 December 2012, with specific provisions commencing immediately after the commencement of Part 1 of Schedule 1 to the Clean Energy Amendment (International Emissions Trading and Other Measures) Act 2012 on 14 December 2012.

Scope and Application

The Excise Tariff Amendment (Per-tonne Carbon Price Equivalent) Act 2012 applies to the Excise Tariff Act 1921, altering its provisions to introduce the concept of a per-tonne carbon price equivalent for excise purposes. This Act targets entities and individuals subject to excise duties on goods where the carbon price equivalent may influence the applicable tariff rate. The changes are triggered by substitution days as defined in the Clean Energy Act 2011 and are intended to align excise duties with carbon pricing mechanisms. The Act's provisions come into force on 12 December 2012, with specific amendments to the Excise Tariff Act 1921 taking effect immediately after the commencement of Part 1 of Schedule 1 to the Clean Energy Amendment (International Emissions Trading and Other Measures) Act 2012 on 14 December 2012. The Act operates on a Commonwealth level, impacting entities across Australia that are subject to excise duties, with the amendments potentially extending to future legislative instruments that rely on the definitions and formulas established in this Act.

Key Provisions

The Excise Tariff Amendment (Per-tonne Carbon Price Equivalent) Act 2012 (Act) amends the Excise Tariff Act 1921 to introduce new provisions relating to the calculation and application of a per-tonne carbon price equivalent in excise tariffs. Specifically, section 1 of the Act repeals the existing definition of "average carbon unit auction price" under subsection 3(1) of the Excise Tariff Act 1921 and replaces it with a new definition of "per-tonne carbon price equivalent." This definition, inserted under section 3(1), ties the per-tonne carbon price equivalent to the six-month period ending at the end of May or November before a specified substitution day, as outlined in sections 6FA or 6FB of the Excise Tariff Act 1921, depending on whether the substitution day is 1 July or 1 January. The new definition also specifies that the per-tonne carbon price equivalent must be the first one calculated and published for that six-month period under section 196A of the Clean Energy Act 2011. Additionally, the Act amends the formulae in subsections 6FA(3) and 6FB(3) of the Excise Tariff Act 1921 to reference the new per-tonne carbon price equivalent, as defined in subsection 3(1). Under this Act, the Excise Tariff Act 1921 is amended to ensure that excise duties are calculated using the new per-tonne carbon price equivalent for specified substitution days. The changes necessitate that entities subject to excise duties must now factor in the per-tonne carbon price equivalent when calculating their excise liabilities. This involves using the most recently published per-tonne carbon price equivalent relevant to the substitution day, ensuring compliance with the new legislative framework. The Act does not explicitly state any offences, penalties, or civil/criminal consequences for non-compliance with its provisions. However, given the nature of excise duty regulations, failure to comply with the amended Excise Tariff Act 1921 could potentially result in penalties under the Excise Act 1901, including fines and other enforcement actions. The maximum penalties for breaches of excise duty obligations can be substantial, reflecting the seriousness with which non-compliance is treated in this area of law.