Ozone Protection and Synthetic Greenhouse Gas (Manufacture Levy) Amendment (Per-tonne Carbon Price Equivalent) Act 2012

Overview

The Ozone Protection and Synthetic Greenhouse Gas (Manufacture Levy) Amendment (Per-tonne Carbon Price Equivalent) Act 2012 was enacted by the Parliament of Australia to address a legislative gap in the existing regulatory framework concerning greenhouse gas emissions. This Act amends the Ozone Protection and Synthetic Greenhouse Gas (Manufacture Levy) Act 1995, intending to align the manufacturing levy on synthetic greenhouse gases with a per-tonne carbon price equivalent. The policy objective is to ensure that the manufacture levy accurately reflects the carbon price as determined by other relevant legislation, specifically the Clean Energy Act 2011. This alignment aims to provide a more precise and effective regulatory mechanism for managing and reducing greenhouse gas emissions in Australia.

Scope and Application

The Ozone Protection and Synthetic Greenhouse Gas (Manufacture Levy) Amendment (Per-tonne Carbon Price Equivalent) Act 2012 amends the Ozone Protection and Synthetic Greenhouse Gas (Manufacture Levy) Act 1995 to align the levy with the carbon pricing mechanism established under the Clean Energy Act 2011. The Act applies to entities involved in the manufacture of synthetic greenhouse gases, specifically targeting the levy on these gases to reflect the per-tonne carbon price equivalent. The legislation thus affects industries engaged in the production of these gases, ensuring that the levy mirrors the carbon pricing framework. The Act applies nationally across Australia, as it is a Commonwealth Act, and it does not specify any exclusions or exemptions. The commencement of the Act is staggered, with certain provisions starting upon Royal Assent on 12 December 2012, while others take 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 also incorporates amendments to existing definitions and provisions to ensure consistency with the carbon pricing mechanism, thereby extending and restricting the application of the original Act through these specified changes.

Key Provisions

The Ozone Protection and Synthetic Greenhouse Gas (Manufacture Levy) Amendment (Per-tonne Carbon Price Equivalent) Act 2012 amends the Ozone Protection and Synthetic Greenhouse Gas (Manufacture Levy) Act 1995. The primary amendments are detailed in Schedule 1, which include modifications to the definitions and the calculation of the applicable charge. Section 2A, previously defining "benchmark average auction charge," is repealed and replaced with a definition of "per-tonne carbon price equivalent" (section 1). This new definition aligns with the term as used in the Clean Energy Act 2011 (section 2). Additionally, subsection 3A(5) of the original Act, specifically the definition of the "applicable charge," is modified. The term "benchmark average auction charge for the previous financial year" is replaced with "per-tonne carbon price equivalent most recently published under section 196A of the Clean Energy Act 2011 before the start of the quarter" (section 3). The amendments impose certain obligations on entities subject to the manufacture levy under the Ozone Protection and Synthetic Greenhouse Gas (Manufacture Levy) Act 1995. These entities must now comply with the updated definition of the per-tonne carbon price equivalent, which ties their charge calculations to the Clean Energy Act 2011. Specifically, they need to reference the most recently published per-tonne carbon price equivalent before the start of each quarter when calculating their applicable charge. This change necessitates that the entities stay updated with the Clean Energy Act 2011's provisions and its amendments to accurately compute their levy obligations. Breaches of the amended Act can result in various civil and criminal consequences. The specific penalties for non-compliance are not detailed within the Act itself but would generally fall under the broader regulatory framework governing environmental and financial compliance in Australia. The Clean Energy (Carbon Pricing Mechanism) Amendment (Transitional Provisions) Act 2012, for instance, outlines potential penalties for non-compliance with the carbon pricing mechanism, which might include fines and other enforcement actions. The severity of these penalties can vary depending on the nature and extent of the breach, but they are intended to ensure adherence to environmental and fiscal regulations.