Ozone Protection and Synthetic Greenhouse Gas (Manufacture Levy) Amendment Act 2011

Administered by Department of Climate Change, Energy, the Environment and Water

Legislation au C2011A00165 In force Act

Legislation content

 

 

 

 

 

 

Ozone Protection and Synthetic Greenhouse Gas (Manufacture Levy) Amendment Act 2011

 

No. 165, 2011

 

 

 

 

 

An Act to amend the Ozone Protection and Synthetic Greenhouse Gas (Manufacture 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 (Manufacture Levy) Act 1995

 

 

 

Ozone Protection and Synthetic Greenhouse Gas (Manufacture Levy) Amendment Act 2011

No. 165, 2011

 

 

 

An Act to amend the Ozone Protection and Synthetic Greenhouse Gas (Manufacture Levy) Act 1995, and for related purposes

[Assented to 4 December 2011]

The Parliament of Australia enacts:

1  Short title

  This Act may be cited as the Ozone Protection and Synthetic Greenhouse Gas (Manufacture Levy) Amendment 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 to 3 and anything in this Act not elsewhere covered by this table

The day this Act receives the Royal Assent.

4 December 2011

2.  Schedule 1

1 July 2012.

However, if section 3 of the Clean Energy Act 2011 does not commence before 1 July 2012, the provision(s) do not commence at all.

1 July 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Note:  This table relates only to the provisions of this Act as originally enacted.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  Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.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

 

Ozone Protection and Synthetic Greenhouse Gas (Manufacture Levy) Act 1995

1  Title

Omit “a levy”, substitute “levies”.

2  After section 2

Insert:

2A  Definitions

  In this Act:

benchmark average auction charge has the same meaning as in the Clean Energy Act 2011.

carbon unit has the same meaning as in the Clean Energy Act 2011.

fixed charge year has the same meaning as in the Clean Energy Act 2011.

flexible charge year has the same meaning as in the Clean Energy Act 2011.

issue, in relation to a carbon unit, has the same meaning as in the Clean Energy Act 2011.

medical equipment includes a pharmaceutical product.

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

2B  Carbon dioxide equivalence of an amount of an SGG

 (1) For the purposes of this Act, the carbon dioxide equivalence of an amount of an SGG that is a greenhouse gas is the amount of the SGG multiplied by a value specified in the regulations in relation to that kind of SGG.

 (2) For the purposes of this Act, the carbon dioxide equivalence of an amount of an SGG that is not a greenhouse gas is zero.

 (3) For the purposes of this section, greenhouse gas has the same meaning as in the National Greenhouse and Energy Reporting Act 2007.

3  After section 3

Insert:

3A  Manufacture levy—SGGs

 (1) If:

 (a) a controlled substances licence allows the licensee to manufacture SGGs; and

 (b) the licensee manufactures an SGG during a quarter during which the licence is in force;

levy is imposed on the licensee in respect of that manufacture.

 (2) Subsection (1) does not apply to the manufacture of an SGG in circumstances that are prescribed for the purposes of paragraph 13(1A)(b) of the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989.

 (3) Subsection (1) does not apply to the manufacture of an SGG that is to be used for a purpose prescribed by the regulations.

 (4) For the purposes of this section, if a licence is in force for only part of a particular quarter, that part is taken to be a quarter.

 (5) The amount of levy imposed by subsection (1) on a licensee in respect of the manufacture of an SGG in a quarter is the amount worked out using the following formula:

where:

applicable charge means:

 (a) if the quarter is in a fixed charge year—the per unit charge applicable under subsection 100(1) of the Clean Energy Act 2011 for the issue of a carbon unit with a vintage year of that fixed charge year; or

 (b) if the quarter is in a flexible charge year—the benchmark average auction charge for the previous financial year.

prescribed rate means the rate prescribed by the regulations.

 (6) The prescribed rate must not exceed $165 per tonne.

 (7) If:

 (a) levy is imposed by subsection (1) on a licensee in respect of the manufacture of an SGG; and

 (b) the Minister is satisfied that the SGG:

 (i) is to be used in medical equipment; or

 (ii) is to be used in the manufacture of medical equipment; or

 (iii) is to be used in a product, or in equipment, prescribed for the purposes of paragraph 8D(1)(c) of the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989; or

 (iv) is to be used in the manufacture of a product, or of equipment, specified in an instrument in force under paragraph 8D(1)(d) of that Act; or

 (v) is to be used for a purpose prescribed by the regulations;

the Minister may, by written notice given to the licensee, determine that the licensee is exempt from the carbon charge component of the amount of the levy.

 (8) For the purposes of subsection (7), the carbon charge component of the amount of the levy is so much of that amount as is equal to the amount worked out using the following formula:

where:

applicable charge means the charge that is the applicable charge for the purposes of the application of subsection (5) to the levy.

 (9) In making a determination under subsection (7), the Minister must have regard to such matters as are specified in the regulations.

 (10) The Minister must not make a recommendation to the Governor‑General about regulations to be made for the purposes of subsection (3) unless the Minister is satisfied that:

 (a) it would be impracticable to impose levy on the manufacture of an SGG that is to be used for a purpose to be prescribed by those regulations; or

 (b) a purpose to be prescribed by those regulations is a medical, veterinary, health or safety purpose.

 (11) The Minister must not make a recommendation to the Governor‑General about regulations to be made for the purposes of subparagraph (7)(b)(v) unless the Minister is satisfied that:

 (a) it would be impracticable to require payment of the carbon charge component of the amount of levy imposed on the manufacture of an SGG that is to be used for a purpose to be prescribed by those regulations; or

 (b) a purpose to be prescribed by those regulations is a medical, veterinary, health or safety purpose.

3A  Section 4 (heading)

Repeal the heading, substitute:

4  Manufacture levy—substances other than SGGs

4  Paragraph 4(1)(a)

After “or substances”, insert “(other than an SGG)”.

5  Subsection 4(2)

Repeal the subsection.

6  Paragraph 4(4)(b)

Repeal the paragraph.

7  Section 5

After “section”, insert “3A or”.

8  Application of amendments

(1) Section 3A of the Ozone Protection and Synthetic Greenhouse Gas (Manufacture Levy) Act 1995 as amended by this Act applies in relation to the manufacture of an SGG during:

 (a) the quarter beginning on 1 July 2012; or

 (b) a later quarter.

(2) The amendments of section 4 of the Ozone Protection and Synthetic Greenhouse Gas (Manufacture Levy) Act 1995 made by this Act apply in relation to the manufacture of a substance during:

 (a) the quarter beginning on 1 July 2012; or

 (b) a later quarter.

 

 

 

[Minister’s second reading speech made in—

House of Representatives on 13 September 2011

Senate on 12 October 2011]

(185/11)

 

Overview

The Ozone Protection and Synthetic Greenhouse Gas (Manufacture Levy) Amendment Act 2011 was enacted to amend the Ozone Protection and Synthetic Greenhouse Gas (Manufacture Levy) Act 1995, addressing the need to update and refine the legislative framework for imposing levies on the manufacture of synthetic greenhouse gases (SGGs) and other substances. This Act was introduced to ensure the regulation of SGGs aligns with broader climate change mitigation policies, particularly those concerning carbon emissions and greenhouse gas management. The Parliament of Australia enacted this legislation to introduce new definitions, impose a manufacture levy on SGGs, and provide exemptions for certain uses of SGGs, reflecting a policy objective to enhance environmental protection and address climate change through targeted financial measures. The Ozone Protection and Synthetic Greenhouse Gas (Manufacture Levy) Amendment Act 2011 introduces amendments that redefine key terms and impose a levy on the manufacture of SGGs, with specific provisions for determining the amount of the levy based on the Clean Energy Act 2011. It also provides for exemptions from the levy for certain uses of SGGs, such as in medical equipment or for other prescribed purposes, to ensure that the regulatory framework remains practical and supportive of essential industries. The Act reflects a policy objective to integrate climate change mitigation strategies into industrial practices by imposing financial charges on the manufacture of substances that contribute to greenhouse gas emissions, thereby encouraging reductions in carbon emissions and promoting environmental sustainability.

Scope and Application

The Ozone Protection and Synthetic Greenhouse Gas (Manufacture Levy) Amendment Act 2011 amends the Ozone Protection and Synthetic Greenhouse Gas (Manufacture Levy) Act 1995 to introduce new levies on the manufacture of synthetic greenhouse gases (SGGs) and to redefine certain terms related to carbon dioxide equivalence. This Act applies to any person or entity holding a controlled substances licence that allows the manufacture of SGGs, imposing a levy on such activities from the quarter beginning on 1 July 2012. The levy is calculated based on either the per unit charge applicable under the Clean Energy Act 2011 for a fixed charge year or the benchmark average auction charge for the previous financial year, whichever is applicable, and must not exceed $165 per tonne. Exemptions from the carbon charge component of the levy may be granted if the SGG is intended for use in medical equipment, products, or equipment prescribed under the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989, or for purposes prescribed by regulations. The Act also repeals certain sections and subsections of the 1995 Act to align with the new provisions. The Minister for the Environment must consider specified matters when determining exemptions and cannot recommend regulations for purposes that are not medical, veterinary, health, or safety-related unless doing so would be impracticable.

Key Provisions

The main operative sections of the Ozone Protection and Synthetic Greenhouse Gas (Manufacture Levy) Amendment Act 2011 introduce several significant changes to the Ozone Protection and Synthetic Greenhouse Gas (Manufacture Levy) Act 1995 (the "1995 Act"). Section 1 amends the title of the 1995 Act to reflect the introduction of multiple levies, while section 2 introduces new definitions that align with the Clean Energy Act 2011. Section 3A introduces a new levy on the manufacture of Synthetic Greenhouse Gases (SGGs), while section 4 modifies the levy for substances other than SGGs, effectively repealing certain provisions related to these substances. These changes are designed to align the 1995 Act with the Clean Energy Act 2011 and to introduce a more comprehensive approach to levying on the manufacture of greenhouse gases. The Act imposes several obligations on parties and entities it governs. Firstly, it requires that a levy be imposed on any licensee who manufactures SGGs during a quarter when their controlled substances licence is in force. The amount of the levy is calculated based on either the per unit charge applicable under the Clean Energy Act 2011 for the issue of a carbon unit, or the benchmark average auction charge for the previous financial year, whichever is applicable. The Minister is also given the authority to exempt certain manufacturers from the carbon charge component of the levy if the SGG is intended for specific uses, such as in medical equipment or for medical, veterinary, health, or safety purposes. The Minister must have regard to specified matters in the regulations when making such a determination and cannot recommend regulations unless it would be impracticable to impose the levy or require payment of the carbon charge component for certain uses. Failure to comply with the obligations imposed by the Act can result in various offences, penalties, or consequences. The Act itself does not explicitly state maximum penalties for breaches. However, given that it amends the 1995 Act, which imposes penalties for non-compliance with its provisions, it can be inferred that similar penalties might apply. These penalties could include fines and, in severe cases, imprisonment. The exact penalties would be governed by the 1995 Act and any related legislation. Additionally, failure to pay the levy when due could result in interest accruing on the unpaid amount and potential legal action to recover the debt.

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