Ozone Protection and Synthetic Greenhouse Gas (Import Levy) Amendment (Carbon Tax Repeal) Act 2014
No. 88, 2014
An Act to amend the Ozone Protection and Synthetic Greenhouse Gas (Import Levy) Act 1995, and for related purposes
Contents
1 Short title
2 Commencement
3 Schedule(s)
Schedule 1—Amendments
Ozone Protection and Synthetic Greenhouse Gas (Import Levy) Act 1995
Ozone Protection and Synthetic Greenhouse Gas (Import Levy) Amendment (Carbon Tax Repeal) Act 2014
No. 88, 2014
An Act to amend the Ozone Protection and Synthetic Greenhouse Gas (Import Levy) Act 1995, and for related purposes
[Assented to 17 July 2014]
The Parliament of Australia enacts:
1 Short title
This Act may be cited as the Ozone Protection and Synthetic Greenhouse Gas (Import Levy) Amendment (Carbon Tax Repeal) Act 2014.
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. | 17 July 2014 |
2. Schedule 1 | At the same time as Part 1 of Schedule 1 to the Clean Energy Legislation (Carbon Tax Repeal) Act 2014 commences. | 1 July 2014 |
Note: This table relates only to the provisions of this Act as originally enacted.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Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.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
Ozone Protection and Synthetic Greenhouse Gas (Import Levy) Act 1995
1 Section 2A (heading)
Repeal the heading, substitute:
2A Definition
2 Section 2A (definition of carbon unit)
Repeal the definition.
3 Section 2A (definition of fixed charge year)
Repeal the definition.
4 Section 2A (definition of flexible charge year)
Repeal the definition.
5 Section 2A (definition of issue)
Repeal the definition.
6 Section 2A (definition of per‑tonne carbon price equivalent)
Repeal the definition.
7 Section 2A (definition of vintage year)
Repeal the definition.
8 Section 2B
Repeal the section.
9 Subsections 3A(7) and (8)
Repeal the subsections, substitute:
(7) The amount of levy imposed by subsection (1) on a licensee in respect of the import of an SGG in a quarter is the amount worked out using the following formula:
where:
prescribed rate means:
(a) $165; or
(b) if a lower amount is prescribed by the regulations—that lower amount.
10 Subsection 3A(9)
Omit “carbon charge component of the amount of the”.
11 Subsection 3A(10)
Repeal the subsection.
12 Paragraph 3A(13)(a)
Omit “the carbon charge component of the amount of”.
13 Subsections 4A(5) and (6)
Repeal the subsections, substitute:
(5) The amount of levy imposed by subsection (1) on a licensee in respect of the import of SGG equipment during a quarter is the amount worked out using the following formula:
where:
prescribed rate means:
(a) $165; or
(b) if a lower amount is prescribed by the regulations—that lower amount.
14 Application of amendments
The amendments of the Ozone Protection and Synthetic Greenhouse Gas (Import Levy) Act 1995 made by this Schedule apply in relation to levy for:
(a) the quarter beginning on 1 July 2014; and
(b) each later quarter.
[Minister’s second reading speech made in—
House of Representatives on 14 July 2014
Senate on 15 July 2014]
Overview
The Ozone Protection and Synthetic Greenhouse Gas (Import Levy) Amendment (Carbon Tax Repeal) Act 2014 was enacted by the Parliament of Australia with the primary objective of repealing the carbon tax regime that had been established under the Ozone Protection and Synthetic Greenhouse Gas (Import Levy) Act 1995. This Act was introduced to address the legislative framework governing the imposition of levies on the import of synthetic greenhouse gases (SGGs) and the associated carbon charge, which had been a subject of significant political and economic debate. By repealing certain provisions, the Act sought to eliminate the carbon tax, thereby removing the financial burden it imposed on businesses and potentially encouraging a shift towards alternative energy solutions.
The Act received Royal Assent on 17 July 2014, with specific provisions commencing on the same date, and the amendments applying to levies from 1 July 2014 onwards. The legislative changes included the repeal of definitions and sections related to the carbon charge, replacing them with fixed prescribed rates for the levy on SGGs and SGG equipment. This amendment was part of a broader legislative effort to dismantle the carbon pricing mechanism, aligning with the policy objective of reducing regulatory burdens and fostering economic stability.
Scope and Application
The Ozone Protection and Synthetic Greenhouse Gas (Import Levy) Amendment (Carbon Tax Repeal) Act 2014 amends the Ozone Protection and Synthetic Greenhouse Gas (Import Levy) Act 1995 by repealing certain definitions and sections related to the carbon tax component of the import levy on synthetic greenhouse gases and synthetic greenhouse gas equipment. This Act applies to licensees who import synthetic greenhouse gases and synthetic greenhouse gas equipment in Australia. The amendments apply to the levy for the quarter beginning on 1 July 2014 and each subsequent quarter. The Act does not specify any exclusions or exemptions, nor does it extend or restrict application through subordinate instruments. The amendments were made to repeal the carbon tax component of the import levy on synthetic greenhouse gases and synthetic greenhouse gas equipment.
Key Provisions
The Ozone Protection and Synthetic Greenhouse Gas (Import Levy) Amendment (Carbon Tax Repeal) Act 2014 primarily amends the Ozone Protection and Synthetic Greenhouse Gas (Import Levy) Act 1995 to repeal the carbon tax component of the import levy for synthetic greenhouse gases (SGG) and equipment. Section 1 of the Act provides that it may be cited as the Ozone Protection and Synthetic Greenhouse Gas (Import Levy) Amendment (Carbon Tax Repeal) Act 2014, and section 2 details the commencement of the Act. Sections 1 to 3 of the Act commenced on the day it received Royal Assent on 17 July 2014. Schedule 1, which contains the amendments to the 1995 Act, commenced on 1 July 2014 in line with the Clean Energy Legislation (Carbon Tax Repeal) Act 2014.
The Act imposes several obligations on parties and entities governed by it. Primarily, it removes the carbon tax component from the levy on the import of SGG and equipment. Under the amended provisions, the levy is now solely based on a prescribed rate. Specifically, the Act repeals the definitions related to carbon units, per-tonne carbon price equivalent, and other terms related to the carbon charge (Schedule 1, items 2-7). It also removes subsections that dealt with the calculation of the carbon charge component (items 8-10, 13). The new levy rate of $165 per tonne for SGG and per item for equipment is introduced in new subsections (items 9-14). These changes ensure that the import levy is no longer influenced by the carbon tax.
The Act does not explicitly outline new offences or penalties for breaches. However, by repealing the carbon tax component and replacing it with a fixed levy rate, it ensures that importers comply with the new levy requirements. Non-compliance with the import levy requirements could lead to penalties under the original Ozone Protection and Synthetic Greenhouse Gas (Import Levy) Act 1995, such as fines up to the greater of $22,000 or three times the amount of the unpaid levy. Additionally, ongoing non-compliance could result in legal action to recover the unpaid levies, interest, and potentially court costs. The removal of the carbon tax component simplifies compliance for importers by eliminating the need to calculate and pay a variable carbon charge.