Over half the money raised from the carbon price is being used to assist households.
Carbon Pricing Mechanism: Who is liable?
The Carbon Pricing Mechanism is expected to cover Australia’s biggest polluters.
Which companies will be liable under the carbon pricing mechanism?
Most companies operating large emitting facilities will be liable—those which generate over 25,000 tonnes of CO2-e emissions each year. Most of these companies directly emit greenhouse gases, such as power stations, mines and heavy industry. Some will be public authorities responsible for emissions from landfills.
The Clean Energy Regulator (CER) maintains the Liable Entities Public Information Database (LEPID).
These numbers are estimates only, and are largely based on emissions data reported under the National Greenhouse and Energy Reporting (NGER) Scheme. NGER registered controlling corporation emission and energy data is available on the Clean Energy Regulator website. Most Australian businesses that will be liable under the carbon pricing mechanism are businesses that already have reporting obligations under the NGER Act.
Data on these businesses is at the subsidiary facility level and is unable to be published because of confidentiality provisions under the NGER legislation.
The vast majority of Australian businesses will not have any obligations under the carbon pricing mechanism.
- Australian Bureau of Statistics show that there were over 2 million actively trading businesses in Australia in 2009 and of these, Australia’s biggest polluters will be directly liable under the carbon pricing mechanism.
What if you are liable?
If you are liable you will have to register under the National Greenhouse and Energy Reporting System, if you have not previously done so. You will also be required to report emissions and surrender permits to match your emissions. The Clean Energy Regulator is required to publish a Liable Entities Public Information Database including those entities who the Regulator considers are likely to be liable.
What if you are not liable?
No action is required if you are not liable.
What about opting-in?
Companies with significant liquid fuel emissions or with an existing liability for emissions from other sources may be eligible to opt into the carbon pricing mechanism as an alternative to being subject to the effective carbon price applied through the fuel tax arrangements. This is set out in another fact sheet and will be available from the 2013-14 financial year.
Determining possible carbon pricing liability
For further information call 1800 057 590.
Disclaimer: The information provided in this fact sheet is based on policy reflected in the Clean Energy Bills passed by the Australian Senate on 8 November 2011. Please note that the material in this fact sheet is provided for general information only and should not be relied upon for the purpose of a particular matter. Please obtain your own independent professional advice before any action or decision is taken on the basis of any of the material in this fact sheet.