Competition and Consumer Point-in-Time Service Updates

The Competition and Consumer Point-in-Time Service has been updated to include the latest amendments in the Clean Energy Legislation (Carbon Tax Repeal) Act 2014 (No. 83 of 2014).

Act 83 of 2014

The Clean Energy Legislation (Carbon Tax Repeal) Bill 2014 (the Main Repeal Bill) repeals the legislation that establishes the carbon pricing mechanism, namely:

• Clean Energy Act 2011;
• Clean Energy (Charges—Customs) Act 2011;
• Clean Energy (Charges—Excise) Act 2011;
• Clean Energy (Unit Issue Charge—Auctions) Act 2011;
• Clean Energy (Unit Issue Charge—Fixed Charge) Act 2011; and
• Clean Energy (Unit Shortfall Charge—General) Act 2011. 

In addition, four technical bills provide for removal of the equivalent carbon price through excise and excise equivalent custom duties and the SGG levies. 

The abolition of other carbon tax-related initiatives are to be done by other Bills that are not part of the Carbon Tax Repeal Bills, namely:

• the abolition of the Climate Change Authority through the Climate Change Authority (Abolition) Bill 2013 [No.2];
• the abolition of the Clean Energy Finance Corporation through the Clean Energy Finance Corporation (Abolition) Bill 2014; and 
• the cancellation of carbon tax related income tax cuts that were legislated to commence on 1 July 2015 through the Labor 2013-14 Budget Savings (Measures No.1) Bill 2014.

The Carbon Tax Repeal Bills provide, in summary, that:

• 2013-14 will be the last financial year that the carbon tax will apply, even if the Parliament does not pass the Carbon Tax Repeal Bills until after 1 July 2014;
• liable businesses and other entities must meet all carbon tax liabilities incurred up to 30 June 2014 under the carbon pricing mechanism, the fuel tax credit system, excise or excise equivalent customs duties, or SGG levies;
• liable businesses and other entities must pay their final carbon tax compliance obligations at the next payment time under the current legislated arrangements;
• industry assistance provided under the Jobs & Competitiveness Program and the Energy Security Fund will continue in 2013-14 for the purpose of meeting carbon tax liabilities, and will then cease;
• the ACCC will have new powers to monitor prices and take action against businesses that attempt to exploit other businesses and consumers by charging unreasonably high prices or making false or misleading claims about the effect of the carbon tax repeal on prices;
• the Steel Transformation Plan Act 2011, which provided carbon tax related assistance to steel industry businesses, will be repealed and the assistance will cease;
• the funding for the Australian Renewable Energy Agency (ARENA) will be adjusted;
• the conservation tillage tax offset, which was introduced at the same time as the carbon tax, will be removed; and
• businesses and other entities with a carbon tax liability are obliged to comply with current carbon tax compliance and reporting arrangements for as long as those arrangements remain law. 

The amendments made by Act 83 of 2014 have been updated in the Point-in-Time Competition and Consumer Service current to 6 August 2014. (NB: Subscription required).

If you are not already a subscriber to this or other Point-in-Time Services then please contact us to find out more or to take a free trial.