Repealing the Carbon Tax
Public consultation – Landfill Facility Operators
Under the carbon tax, many landfill facility operators charged their customers in relation to future carbon liabilities that were expected to accrue as the waste being deposited decayed over many decades. Now that the carbon tax has been repealed, future year liabilities for emissions from that waste will never eventuate, however charges equivalent to those future year liabilities have been paid by many waste customers.
In response to industry requests, the Australian Government is considering options for the use of these funds in instances where it is not possible to issue refunds in a manner that ensures the consumers who actually paid it benefit.
- Public consultation – Landfill Facility Operators - comments closed Thursday 12 February 2015
Abolition of the Carbon Tax
The carbon tax repeal legislation received the Royal Assent on Thursday, 17 July 2014 and the bills as part of this package are now law, with effect from 1 July 2014.
Abolishing the carbon tax will lower costs for Australian businesses and ease cost of living pressures for households.
Carbon tax repeal legislation
On 17 July 2014 the following legislation to abolish the carbon tax was passed by the Senate and received the Royal Assent:
- Clean Energy Legislation (Carbon Tax Repeal) Act 2014
- Customs Tariff Amendment (Carbon Tax Repeal) Act 2014
- Excise Tariff Amendment (Carbon Tax Repeal) Act 2013 2014
- Ozone Protection and Synthetic Greenhouse Gas (Import Levy) Amendment (Carbon Tax Repeal) Act 2014
- Ozone Protection and Synthetic Greenhouse Gas (Manufacture Levy) Amendment (Carbon Tax Repeal) Act 2014
- True-up Shortfall Levy (Excise) (Carbon Tax Repeal) Act 2014
- True-up Shortfall Levy (General) (Carbon Tax Repeal) Act 2014
- Ozone Protection and Synthetic Greenhouse Gas (Import Levy) (Transitional Provisions) Act 2014
Fact sheets on carbon tax repeal
- How the carbon tax works (PDF - 73.52 KB) | (DOCX - 569.58 KB)
- How the repeal will work (PDF - 59.45 KB) | (DOCX - 569.04 KB)
- Ensuring consumers benefit (PDF - 59.29 KB) | (DOCX - 568.51 KB)
- Impacts on households and businesses (PDF - 60.69 KB) | (DOCX - 569.33 KB)
- Impacts on landfill and waste (PDF - 58.95 KB) | (DOCX - 566.19 KB)
- Treatment of Synthetic Greenhouse Gases (PDF - 61.13 KB) | (DOCX - 567.91 KB)
- Industry Assistance (PDF - 55.93 KB) | (DOCX - 563.64 KB)
What removing the carbon tax will mean for Australians
Repealing the carbon tax and the Clean Energy Package is designed to:
- Reduce the cost of living - modelling by the Australian Treasury suggests that removing the carbon tax in 2014-15 will leave average costs of living across all households around $550 lower than they would otherwise be in 2014-15.
- Lower retail electricity by around 9 per cent and retail gas prices by around 7 per cent than they would otherwise be in 2014-15 with a $25.40 carbon tax.
- Boost Australia’s economic growth, increase jobs and enhance Australia’s international competitiveness by removing an unnecessary tax, which hurts businesses and families.
- Reduce annual ongoing compliance costs for around 370 liable entities by almost $90 million per annum.
- Remove over 1,000 pages of primary and subordinate legislation.
Ensuring lower prices are passed through
The Government is committed to ensuring that consumers benefit from the removal of the carbon tax. The Australian Competition and Consumer Commission (ACCC) will monitor and enforce reasonably expected price reductions across key sectors of the economy, particularly the electricity, gas and synthetic greenhouse gas sectors.
The ACCC will also have, for one year following the repeal of the carbon tax, new powers to take action against entities that engage in carbon tax-related price exploitation, or that make false or misleading claims about the effect of the carbon tax repeal on prices. These new provisions will complement the existing provisions of the Australian Consumer Law that prohibit misleading and deceptive conduct and false or misleading representations.
Further information is available on the ACCC’s website: www.accc.gov.au/consumers/prices-receipts/carbon-tax-repeal-for-consumers.
Industry assistance provided under the Jobs & Competitiveness Program, the Energy Security Fund and the Steel Transformation Plan has continued in 2013-14 for the purpose of meeting carbon tax liabilities, but has now ceased.
Climate Change Authority and Clean Energy Finance Corporation
The Climate Change Authority (Abolition) Bill 2013 and the Clean Energy Finance Corporation (Abolition) Bill 2014, were introduced into parliament as part of the broader Carbon Tax Repeal Legislative Package and each of which will proceed separately. Policy responsibility for the Clean Energy Finance Corporation remains with the Treasury.
Role of the Clean Energy Regulator
The Clean Energy Regulator will ensure that carbon tax liabilities are met in full. Any enquiries regarding compliance and reporting arrangements for 2013-14 should continue to be directed to the Clean Energy Regulator.
Direct Action Plan
On 18 June 2014, the Government introduced to Parliament a bill to implement the Emissions Reduction Fund, the centrepiece of the Direct Action Plan. The Carbon Farming Initiative Amendment Bill 2014 will expand the Carbon Credits (Carbon Farming Initiative) Act 2011.
Exposure drafts and public consultation
The Government released exposure drafts of legislation to repeal the carbon tax on 15 October 2013. Consultation closed on 4 November 2013. For more information on the closed consultation processes, including a consultation paper on the exposure drafts of legislation, see Repealing the Carbon Tax – Public Comments.
As part of the carbon tax repeal process, the Australian Government also released exposure drafts of associated legislative instruments. Consultation closed on Friday, 18 July 2014. For further information see: Carbon Tax Repeal – Associated Draft Legislative Instruments.