Explanatory Statement
Issued by the authority of the Minister for Climate Change and Energy
Offshore Electricity Infrastructure Act 2021
Offshore Electricity Infrastructure Amendment (Remittal of Fees and Levies and Other Measures) Regulations 2025
Legislative Authority
The Offshore Electricity Infrastructure Act 2021 (OEI Act) establishes a legal framework to
enable the construction, installation, commissioning, operation, maintenance, and
decommissioning of offshore electricity infrastructure (OEI) in the Commonwealth offshore
area.
Section 10 of the OEI Act defines the term ‘offshore renewable energy infrastructure’. Paragraph 10(3)(e) provides that any infrastructure, structure or installation of a kind prescribed by the regulations is not ‘offshore renewable energy infrastructure’.
Subsection 189(2) of the OEI Act provides that the amount of the fee for an application made under the OEI Act is the amount prescribed by the regulations. The application fees are prescribed in section 146 of the Offshore Electricity Infrastructure Regulations 2022 (OEI Regulations).
Subsection 190(2) of the OEI Act provides that regulations may provide for the remittal or refund of all or part of an amount of levy. The types of levies, their amounts and the periods for which they must be paid are prescribed in the Offshore Electricity Infrastructure (Regulatory Levies) Regulations 2022.
Section 305 of the OEI Act provides that the Governor-General may make regulations
prescribing matters required or permitted by the OEI Act or necessary or convenient for
carrying out or giving effect to the OEI Act.
Purpose
The purpose of the Offshore Electricity Infrastructure Amendment (Remittal of Fees and Levies and Other Measures) Regulations 2025 (Amendment Regulations) is to amend the OEI Regulations to:
- temporarily reduce the application fee for research and demonstration licences and transmission and infrastructure licences for a period of 24 months from the commencement of the Amendment Regulations.
- temporarily remit the total amount of OEI levy payable in respect of feasibility licences and research and demonstration licences, and half the amount of OEI levy payable in respect of transmission and infrastructure licences if granted on or before 30 June 2027. The remittal of levies will apply for two 12-month periods. For feasibility licences, the first 12-month period may be the 12-month period that began before the commencement of the Amendment Regulations if the levy for that period was not paid immediately before the commencement of the Amendment Regulations.
- exclude fixed or tethered infrastructure that has the primary purpose of generating, obtaining, storing, transmitting or conveying ammonia, hydrogen, kerosene and methanol from the definition of ‘offshore renewable energy infrastructure’.
The amendments to remit levies and reduce application fees meet the Government’s commitment to provide temporary financial relief for two years for offshore wind development.
The amendment to exclude infrastructure primarily related to ammonia, hydrogen, kerosene and methanol clarifies that these types of infrastructure are not regulated by the OEI Act.
Background
On 16 September 2025, the Government made a commitment to make it easier for the emerging offshore wind sector by reducing financial burdens for offshore wind development in Australia.
To provide temporary financial relief for two years, the Government made a commitment to:
- waive annual levies applied to feasibility and research and demonstration licences
- halve annual levies applied to transmission and infrastructure licences
- reduce application fees for research and demonstration licences from $300,000 to $20,000; and
- reduce application fees for transmission and infrastructure licences from $300,000 to $150,000.
The OEI Act and associated regulatory regime provides appropriate safety and environmental regulation for existing and new offshore electrical generation infrastructure to support Australia’s green energy transition. There are unique environmental and safety risks associated with operating a hydrogen or other low carbon liquid fuel facility in Commonwealth waters. Work to consider appropriate regulatory frameworks for offshore hydrogen and low carbon chemical fuels facilities is anticipated to commence in 2026.
Impact and Effect
The reduction of application fees for research and demonstration licences and transmission and infrastructure licences applies to applications made on or after the commencement of the Amendment Regulations for a period of two years.
The temporary remittal of levies applies in respect of feasibility licences, research and demonstration licences and transmission and infrastructure licences granted on or before 30 June 2027. The remittal is temporary as it only applies to two consecutive 12-month periods from the date that the licence is granted. For a feasibility licence that was granted before the commencement of the Amendment Regulations, an unpaid levy that was due in the 12-month period that began before the Amendment Regulations commenced is remitted as well as the levy for the subsequent 12-month period.
The exclusion amendment to the definition of ‘offshore renewable energy infrastructure’ does not impact applications for a licence made before the commencement of the Amendment Regulations.
Consultation
The Department of Climate Change, Energy, the Environment and Water (the Department) consulted the Offshore Infrastructure Registrar (Registrar), the Offshore Infrastructure Regulator (Regulator), the Department of the Prime Minister and Cabinet, the Department of Finance, and the Treasury on the proposal to temporarily suspend cost recovery through the Amendment Regulations. Government agencies consulted were supportive of the temporary financial relief to the emerging offshore wind industry in Australia.
The Department also consulted the Registrar and the Regulator on the amendment to exclude certain fixed or tethered infrastructure from the definition of ‘offshore renewable energy infrastructure’, and both agencies were supportive of the amendment.
Details/ Operation
Details of the Amendment Regulations are set out in Attachment A.
Other
The Amendment Regulations are a legislative instrument for the purposes of the Legislation Act 2003.
The Amendment Regulations are compatible with the human rights and freedoms recognised or declared under section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011. A full statement of compatibility is set out in Attachment B.
Attachment A
Details of the Offshore Electricity Infrastructure Amendment (Remittal of Fees and Levies and Other Measures) Regulations 2025
Section 1 – Name
This section provides that the name of the instrument is the Offshore Electricity Infrastructure Amendment (Remittal of Fees and Levies and Other Measures) Regulations 2025 (Amendment Regulations).
Section 2 – Commencement
This section provides for the Amendment Regulations to commence on the day after registration on the Federal Register of Legislation.
Section 3 – Authority
This section provides that the Amendment Regulations are made under the Offshore Electricity Infrastructure Act 2021 (the Act).
Section 4 – Schedules
This section provides that each instrument that is specified in a Schedule to this instrument is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this instrument has effect according to its terms.
Schedule 1 – Amendments
This schedule incorporates amendments to the Offshore Electricity Infrastructure Regulations 2022 (Principal Regulations).
Item 1 – Section 146
This item inserts the number “(1)” before the word “For”.
Item 2 – Section 146
This item inserts at the end of section 146 of the Principal Regulations new subsections (2) and (3) under the subheading ‘Temporary fee reduction’.
Subsection 146(2) provides that despite subsection 146(1), the amount of the fee for dealing with an application for a research and demonstration licence made during the period of 24 months beginning on the day the subsection commences is $20,000.
Subsection 146(3) provides that despite subsection 146(1), the amount of the fee for dealing with an application for a transmission and infrastructure licence made during the period of 24 months beginning on the day the subsection commences is $150,000.
Item 3 – At the end of Part 11
This item adds new sections 150A and 150B at the end of Part 11 of the Principal Regulations.
Section 150A - Temporary remittal of unpaid levy—holders of feasibility licences
Subsection 150A(1) provides that this section is made for the purposes of subsection 190(2) of the Act.
Subsection 150A(2) provides that a holder of a feasibility licence is eligible for remittal of the total amount of an offshore electricity infrastructure levy for a 12-month period if:
- the period began before the commencement of this section; and
- the levy was not paid immediately before that commencement.
Subsection 150A(3) provides that the total amount of offshore electricity infrastructure levy payable in respect of the feasibility licence for the next 12-month period is remitted. This period follows immediately after the period mentioned in subsection 150A(2).
A note under subsection 150A(3) refers readers to section 5 of the Offshore Electricity Infrastructure (Regulatory Levies) Regulations 2022 (OEI (RL) Regulations), which prescribes the periods for which an offshore electricity infrastructure levy must be paid by a feasibility licence holder.
Subsection 149(2) of the Principal Regulations provides that the offshore infrastructure levy that is payable for a particular period is due and payable 30 days after the beginning of the period. This means the levy is due 30 days after the grant of a licence and 30 days after each anniversary of when the licence was granted.
There may be some licence holders that would not have paid the levy for a 12-month period that began before the Amendment Regulations commenced. For example, if the Amendment Regulations commenced during the 30-day period after the anniversary of the grant of a licence and before the levy has been paid or payment of the levy is late, section 150A applies to these licence holders. That is, the total amount of that levy is remitted and the total amount of the levy that is due and payable in the subsequent 12-month period is also remitted. This provides payment relief of levies for these feasibility licences for a total period of 24 months.
Section 150B - Temporary remittal of levy payable on or after commencement of this section
Subsection 150B(1) provides that this section is made for the purposes of subsection 190(2) of the Act.
Levy imposed on holders of feasibility licences
Subsection 150B(2) provides that the total amount of offshore electricity infrastructure levy payable in respect of a feasibility licence granted on or before 30 June 2027, for the first 2 periods that begin on or after the commencement of section 150B is remitted.
This payment relief of levies for two consecutive 12-month periods applies to a licence regardless of who holds the licence. For example, First Pty Ltd is granted a feasibility licence on 1 July 2026. Offshore electricity infrastructure levy payable by First Pty Ltd is remitted for the period beginning on 1 July 2026. The licence is transferred to Second Pty Ltd on 15 January 2027. Levy payable by Second Pty Ltd is remitted for the period beginning on 1 July 2027. Second Pty Ltd does not get the benefit of any further remittals as the levy has been remitted for the first two periods. This example also applies to the levy remittal for research and demonstration licences and transmission and infrastructure licences, as provided by subsections 150B(4) and (5) below.
A note under subsection 150B(2) refers readers to section 5 of the OEI (RL) Regulations, which prescribes the periods for which an offshore electricity infrastructure levy must be paid by a feasibility licence holder.
Subsection 150B(3) provides that subsection 150B(2) does not apply if the total amount of offshore electricity infrastructure levy payable in respect of the feasibility licence is remitted in accordance with section 150A. This is to ensure there is consistent application of the levy remittal provisions to feasibility licences that are granted on or before 30 June 2027. The feasibility licence will have the levy remitted for a 24-month period either under section 150A or 150B depending on whether the first 12-month period of unpaid levy began before or after the commencement of the Amendment Regulations.
Levy imposed on holders of research and demonstration licences
Subsection 150B(4) provides that the total amount of offshore electricity infrastructure levy payable for a research and demonstration licence granted on or before 30 June 2027, is remitted for the first 2 periods that begin on or after the commencement of section 150B.
A note under subsection 150B(4) refers readers to section 7 of the OEI (RL) Regulations, which prescribes the periods of which an offshore electricity infrastructure levy must be paid by a research and demonstration licence holder.
Levy imposed on holders of transmission and infrastructure licences
Subsection 150B(5) provides that for a transmission and infrastructure licence granted on or before 30 June 2027, half of the total amount of offshore electricity infrastructure levy payable in respect of that licence for the first 2 periods that begin on or after the commencement of section 150B is remitted.
A note under subsection 150B(5) refers readers to section 8 of the OEI (RL) Regulations, which prescribes the periods of which an offshore electricity infrastructure levy must be paid by a person who is the holder of a transmission and infrastructure licence.
Item 4 – After section 159
This item inserts new section 159A after section 159 of the Principal Regulations.
Section 159A – Meaning of offshore renewable energy infrastructure
For the purposes of paragraph 10(3)(e) of the Act, new section 159A excludes from the meaning of ‘offshore renewable energy infrastructure’ fixed or tethered infrastructure that has the primary purpose of generating, obtaining, storing, transmitting or conveying any one or more of the following chemicals:
- ammonia;
- hydrogen;
- kerosene;
- methanol;
whether any of those chemicals is in liquid form or in the form of a gas.
The risks of leaks and spills of these chemicals in the Commonwealth offshore area may have more serious consequences than the risks involving electricity generation and transmission.
Item 5 – At the end of Part 14
This item inserts new section 166 at the end of Part 14 of the Principal Regulations. New section 166 is an application provision.
Section 166 – Application of amendments made by the Offshore Electricity Infrastructure Amendment (Remittal of Fees and Levies and Other Measures) Regulations 2025
Section 166 provides that new section 159A, as incorporated by Schedule 1 to the Amendment Regulations, applies in relation to an application for a licence made on or after the commencement of this section.
ATTACHMENT B
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Offshore Electricity Infrastructure Amendment (Remittal of Fees and Levies and Other Measures) Regulations 2025
This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Overview of the Legislative Instrument
The Offshore Electricity Infrastructure Amendment (Remittal of Fees and Levies and Other Measures) Regulations 2025 (Amendment Regulations) amend the Offshore Electricity Infrastructure Regulations 2022 (Principal Regulations) to temporarily remit offshore electricity infrastructure levies, as prescribed by the Offshore Electricity Infrastructure (Regulatory Levies) Regulations 2022, that apply to feasibility licences, research and demonstration licences and transmission and infrastructure licences. The Amendment Regulations also reduce application fees, as prescribed by section 146 of the Principal Regulations, for research and demonstration licences and transmission and infrastructure licences. These amendments align with the Government’s commitment to provide temporary financial relief for two years for offshore wind development.
The Amendment Regulations also exclude fixed or tethered infrastructure in the Commonwealth offshore area that has the primary purpose of generating, obtaining, storing, transmitting or conveying ammonia, hydrogen, kerosene and methanol from the definition of ‘offshore renewable energy infrastructure’.
Human rights implications
This Legislative Instrument does not engage any of the applicable rights or freedoms.
Conclusion
This Legislative Instrument is compatible with human rights as it does not raise any human rights issues.
The Hon. Chris Bowen MP
Minister for Climate Change and Energy