Clean Energy Legislative Package: Carbon Tax 2011

The Clean Energy Legislative Package, which sets up the Government’s carbon pricing mechanism (carbon tax) the key part of its climate change plan was introduced into parliament today (18 September 2011). The package is comprised of 18 Bills in all which can be grouped into five broad descriptions as follows:

The main Bill the Clean Energy Bill 2011 which creates the pricing mechanism and sets out the structure of and process for introducing the mechanism. These include: 

• entities and emissions that are covered by the mechanism;

• liable entities’ obligation to surrender emissions units corresponding to their emissions;

• limits on the number of emissions units that will beissued;

• the nature of carbon units;

• allocation of carbon units, including by auction and the issue of free units;

• mechanisms to contain costs, including the fixed charge period and price floors and ceilings;

• linking to other emissions trading schemes;

• assistance in relation to emissions-intensive trade exposed activities and coal-fired electricity generators; and

• monitoring and enforcement.

Statutory bodies

The Clean Energy Regulator Bill 2011 which sets up the Clean Energy Regulator, which is to be a statutory authority that will administer the mechanism and enforce the law.

The Climate Change Authority Bill 2011 which sets up the Climate Change Authority an independent body that will provide the Government expert advice on key aspects of the mechanism and the Government’s climate change mitigation initiatives. The Government will retain responsibility for carbon pricing policy decisions. The Bill also sets up the Land Carbon and Biodiversity Board which will advise on key initiatives in the land sector.

Consequential amendments

The Clean Energy (Consequential Amendments) Bill 2011 will make consequential amendments to a range of legislation.

Technical Bills are introduced to cover those elements of the mechanism which oblige a person to pay money. These are separate Bills that comply with the requirements of s 55 of the federal Constitution. These bills are:

• Clean Energy (Unit Shortfall Charge -General) Bill 2011,  

• Clean Energy (Unit Issue Charge Auctions) Bill 2011,

• Clean Energy (Unit Issue Charge - Fixed Charge) Bill 2011,

• Clean Energy (Charges - Customs) Bill 2011,

• Clean Energy (Charges -Excise) Bill 2011,

• Clean Energy (International Unit Surrender Charge) Bill 2011,

• Ozone Protection and Synthetic Greenhouse Gas (Import Levy) Amendment Bill 2011 and the  

• Ozone Protection and Synthetic Greenhouse Gas (Manufacture Levy) Amendment Bill 2011.

Related bills
Other elements of the Government’s Climate Change Plan are being implemented through other legislation. These are:

• Clean Energy (Excise Tariff Legislation Amendment) Bill 2011

• Clean Energy (Customs Tariff Amendment) Bill 2011, which

impose an effective carbon price on transport fuels (other than those used by households and in light commercial vehicles) through excise and customs tariffs;

Clean Energy (Fuel Tax Legislation Amendment) Bill 2011, which reduces the business fuel tax credit entitlement of non-exempted industries for their use of liquid and gaseous transport fuels, in order to provide an effective carbon price on business through the fuel tax system; and the Clean Energy Amendment (Household Assistance Amendments) Bill 2011, Clean Energy (Tax Laws Amendments) Bill 2011 and the Clean Energy (Income Tax Rates Amendments) Bill 2011, which will implement the household assistance measures announced by the Government on 10 July 2011. These bills amend relevant legislation to provide payment increases for pensioners, allowees and family payment recipients and provide income tax cuts and establish new supplements for low- and middle income households.

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