Clean energy legislation: the way ahead

Australia is introducing a price on carbon, which will start on 1 July 2012.

A price on carbon is an incentive for those that will pay it (big polluters) to change the way they do business.

It will encourage businesses to:

  • use or generate renewable energy;
  • reduce energy consumption;
  • implement technologies that will improve energy efficiency; and
  • invest in renewable energy, such as solar and wind.

A carbon price is fundamental to transforming the Australian economy, allowing our nation to grow industries and jobs with less pollution.

New clean energy laws

The Clean Energy Legislative Package, passed by the Senate on 8 November 2011, sets out how Australia will introduce a carbon price to reduce Australia's carbon pollution and move to a clean energy future.

These pages provide information about how the Australian Government is implementing the reforms contained in the Clean Energy Legislative Package.

Next steps

The Clean Energy Legislative Package is being implemented so that the carbon price can start on 1 July 2012. This page will contain regularly updated information about the obligations for liable entities.

The Australian Government will engage in regular consultation with affected businesses and the public on the development of Regulations and administrative systems over the coming months. Information about consultations is available on the public consultations webpage.

Related programs and reforms

Further information

For more information, call the Clean Energy Future information line on 1800 057 590 or visit Clean Energy Future.

Carbon price claims

Are you concerned about a claim by a business that the carbon price will impact on its pricing?

Contact the Australian Competition and Consumer Commission on 1300 302 502.

Tax information

For information about how the tax system will work with the carbon pricing mechanism and changes to fuel tax and excise, please contact the Australian Taxation Office for more information.

If you require certainty in relation to the tax implications of the clean energy measures, you may wish to seek a private binding ruling from the Australian Taxation Office. However, the private binding ruling will only apply from the date of commencement of the relevant legislation.

Questions and answers

Am I liable to pay the carbon price?

The carbon price expects to cover approximately 500 entities operating in Australia.

Most entities operating large facilities and natural gas suppliers will be liable—that is, those facilities that emit more than 25,000 tonnes of CO2-e emissions each year or whose natural gas embodies emissions of more than 25,000 tonnes of CO2-e emissions each year.

The vast majority of Australian businesses will not have any direct obligations under the carbon pricing mechanism.

What happens with reporting under the National Greenhouse and Energy Reporting scheme?

The majority of liable entities will already be reporting on some of their emissions through the National Greenhouse and Energy Reporting (NGER) scheme.

The carbon price will not alter existing NGER reporting arrangements. Corporations that currently report under NGER and that only meet indirect greenhouse gases (scope 2 emissions) and energy (produce or consume energy) thresholds, will not be subject to a carbon price liability.

Some entities that do not currently report under NGER will need to start doing so. The majority of new reporting entities are from the landfill and waste industries and have not been required to report their emissions in the past through NGER.

From 1 July 2012, liable entities will report on their carbon price covered emissions.

What do I need to do now?

If you have existing reporting liabilities under NGER, please continue to report on your emissions and energy consumption and production as usual.

The department will continue to provide information to reporting entities through existing NGER communication channels like NGER eNews.

Who do I contact for more information?

You can find out more by visiting the Clean Energy Regulator. The Clean Energy Regulator was established on 2 April 2012, taking over the regulatory functions for NGER, the Renewable Energy Target and the Carbon Farming Initiative.

For further information, call the Clean Energy Future information line on 1800 057 590 or visit Clean Energy Future.