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Equivalent carbon price

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Equivalent carbon price for synthetic greenhouse gases

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Frequently asked questions

• General questions about the equivalent carbon price
• Information for importers
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Information for technicians

Last updated: 2 July 2012

How will the equivalent carbon price on synthetic greenhouse gases affect business?

As the value of synthetic greenhouse gases will increase with the introduction of the equivalent carbon price, all businesses, including refrigeration and air conditioning businesses, will need to consider how their business uses, stores, supplies, services, disposes of and otherwise manages, these gases.

Businesses and technicians must continue to comply with all legislative and regulatory requirements, including relevant standards (such as the Australian Standard/New Zealand Standard 1677 Refrigeration Systems), codes of practice (such as the Australia and New Zealand refrigerant handling code of practice and the Australian automotive code of practice), work health and safety legislation and with competition and consumer legislation. Each industry's requirements will vary. For example:

• Refrigeration and air conditioning (RAC) businesses and technicians working with refrigerants which are synthetic greenhouse gases or ozone depleting substances will need to meet refrigerant handling licence and refrigerant trading authorisation conditions. Retrofitting any system with an alternative refrigerant should only be carried out based on written advice from equipment manufacturers and in compliance with applicable laws.
• Businesses and technicians working with fire protection equipment will need to meet extinguishing agent handling licence and extinguishing agent trading authorisation conditions if synthetic greenhouse gases or ozone depleting substances for use as extinguishing agents are acquired, possessed or disposed of.

A compliance and audit team will oversee compliance with the Ozone Protection and Synthetic Greenhouse Gas Management legislation. Authorised inspectors may visit the premises of companies dealing with synthetic greenhouse gases to do such things as inspect, examine, test or take away samples of gas for testing and/or view records relating to the gases. Significant penalties apply for breaches of the legislation, such as importing regulated gases without a licence.

Applying an equivalent carbon price based on the equivalent carbon price to synthetic greenhouse gases provides an opportunity for the industry to further promote correct installation and regular maintenance of affected equipment. Businesses should discuss maintenance programs with clients and help clients understand how to better manage their systems. It also provides an opportunity to discuss alternative technologies when customers are considering system options.

Can the equivalent carbon price be passed on?

Each business will need to make a commercial decision about whether some, or all, of the carbon charge component of the levy based on the equivalent carbon price is passed on to consumers or other businesses dealing with products or services containing these gases. The Australian Competition and Consumer Commission (www.accc.gov.au/content/index.phtml/itemId/1017091) has provided a guide for businesses on determining carbon price claims.

What is work health and safety legislation and does it apply to me?

Australian states and territories each have their own work health and safety legislation together with Regulations, codes of practice and guidance materials which are relevant to the general circumstances and practices needed to maintain a safe working environment. Under work health and safety legislation designers, manufacturers, suppliers and installers of synthetic greenhouse gases or equipment containing synthetic greenhouse gases all have responsibility to provide a safe working environment, this includes managing work health and safety risks. The most important step in managing risks involves eliminating them, or if that is not possible, minimising the risks so far as is reasonably practicable.

Where do I find more information on my work health and safety requirements?

For information about your work health and safety requirements and how this is applied in each state and territory, visit the Safe Work Australia website to find the relevant work health and safety authority.

For information about Australian Standards, visit Standards Australia website

How can technicians stay informed?

If you wish to receive updates about the equivalent carbon price for synthetic greenhouse gases you can subscribe to our News updates.