inform government policy formulation and the Australian public; and

meet Australia’s international reporting obligations; and

assist Commonwealth, State and Territory government programs and activities; and

avoid the duplication of similar reporting requirements in the States and Territories.

net covered emissions of greenhouse gases from the operation of a designated large facility do not exceed the baseline applicable to the facility;

total net safeguard emissions for all of the financial years between 1 July 2020 and 30 June 2030 do not exceed a total of 1,233 million tonnes of carbon dioxide equivalence;

net safeguard emissions decline to:

no more than 100 million tonnes of carbon dioxide equivalence for the financial year beginning on 1 July 2029; and

zero for any financial year to begin after 30 June 2049;

the 5-year rolling average safeguard emissions for each financial year that begins after 30 June 2024 are lower than the past 5-year rolling average safeguard emissions for that financial year;

the responsible emitter for each designated large facility has a material incentive to invest in reducing covered emissions from the operation of the facility;

the competitiveness of trade-exposed industries is appropriately supported as Australia and its regions seize the opportunities of the move to a global net zero economy.

carbon dioxide;

methane;

nitrous oxide;

sulfur hexafluoride;

a hydrofluorocarbon of a kind specified in the table in subsection (2);

a perfluorocarbon of a kind specified in the table in subsection (3);

a prescribed gas.

Table 1—Hydrofluorocarbons

the controlling corporation;

the controlling corporation’s subsidiaries covered by subsection (3) (if any).

However, paragraph (b) does not apply if the controlling corporation is not incorporated in Australia.

(a) the subsidiary is also a subsidiary of another body corporate because the other body corporate meets the requirement in subparagraph 46(a)(i) or (ii) of the Corporations Act 2001 in relation to the subsidiary; and

the other body corporate is not a member of the group (including by reason of a previous operation of this subsection).

form a single undertaking or enterprise and meet the requirements of the regulations; or

are declared by the Regulator to be a facility under section 54, 54A or 54B.

the circumstances in which an activity or activities (including ancillary activities) will form part of a single undertaking or enterprise; and

what activities are attributable to particular industry sectors.

(a) scope 1 emission of greenhouse gas;

(aa) scope 2 emission of greenhouse gas;

(b) reduction of greenhouse gas emissions;

(c) removal of greenhouse gas;

(d) offsets of greenhouse gas emissions;

(e) production of energy;

(f) consumption of energy;

have the meaning specified by the regulations.

in the case of scope 1 emissions—different methods or criteria for emissions from different sources; and

different methods or criteria depending on the circumstances in which the scope 1 emissions, scope 2 emissions, reduction, removal, offsets, production or consumption occurred; and

conditions relating to the use of methods determined by the Minister or of methods which meet criteria determined by the Minister; and

rating systems for those methods (including different rating systems for different circumstances); and

the particular rating given to each of those methods.

as in force or existing at a particular time; or

as in force or existing from time to time.

the person has the authority to introduce and implement any or all of the following for the facility:

operating policies;

health and safety policies;

environmental policies;

and meets the requirements of the regulations; or

the Regulator declares the person to have operational control of the facility under section 55 or 55A.

2 or more persons could satisfy paragraph 11(1)(a) in relation to a facility throughout the period;

a particular person has the greatest authority to introduce and implement the policies mentioned in subparagraphs 11(1)(a)(i) and (iii) in relation to the facility throughout the period;

no declaration under section 55 or 55A applies in relation to the facility at any time during the period.

Operational control

(a) 2 or more persons (the relevant persons) could satisfy paragraph 11(1)(a) in relation to the facility at that time; and

no particular person has the greatest authority to introduce and implement the policies mentioned in subparagraphs 11(1)(a)(i) and (iii) in relation to the facility at that time; and

no declaration under section 55 or 55A applies in relation to the facility at that time; and

that time occurs in a designated financial year.

Nomination

(a) beginning at the start of the day specified in the nomination as the day on which the nomination is to come into force (the start day); and

ending at a later time specified in the nomination.

be in writing; and

be in a form approved by the Regulator; and

be accompanied by such information as is specified in the regulations; and

be accompanied by such documents (if any) as are specified in the regulations.

any of those persons is a foreign person; and

any of those persons is not a foreign person;

a foreign person cannot be nominated.

the facility passes the eligible nomination test; and

the nominators are the relevant persons.

the start day occurs in the same financial year as the day on which the nomination is made; or

the start day occurs in the financial year next following the financial year in which the nomination is made.

Cancellation of nomination

the facility passes the eligible nomination test, but the nominated person is not a relevant person; or

the facility does not pass the eligible nomination test; or

the nominated person has become a Chapter 5 body corporate; or

the nominated person has become an insolvent under administration; or

the nominated person has an unsatisfactory compliance record.

(a) a nomination (the original nomination) is in force in relation to a facility; and

another nomination is made in relation to the facility;

the other nomination has no effect unless it is expressed to replace the original nomination.

Revocation of nomination

(a) a nomination (the original nomination) is in force in relation to a facility; and

another nomination is made in relation to the facility; and

the other nomination is expressed to replace the original nomination;

the original nomination is taken to have been revoked at the beginning of the start day for the other nomination.

Operational control—nomination made

a nomination is in force in relation to a facility throughout a particular period; and

the facility passes the eligible nomination test at all times during the period;

the nominated person is taken, for the purposes of this Act, to have operational control of the facility throughout the period.

Operational control—nomination not made

no nomination is in force in relation to a facility at any time during a particular period; and

the facility passes the eligible nomination test at all times during the period;

each of the relevant persons is taken, for the purposes of this Act, to have operational control of the facility throughout the period.

Notification

a nomination is in force in relation to a facility; and

the facility ceases to pass the eligible nomination test;

each nominator must, within 30 days after the cessation, notify the cessation to the Regulator unless the cessation has previously been notified to the Regulator.

Exceptions

because of section 11, 11A or 11B, a trust has operational control of the facility at that time; and

(b) at that time, there are 2 or more trustees (the relevant trustees) of the trust; and

no declaration under section 55 or 55A applies in relation to the facility at that time; and

that time occurs in a designated financial year.

Nomination

(a) beginning at the start of the day specified in the nomination as the day on which the nomination is to come into force (the start day); and

ending at a later time specified in the nomination.

be in writing; and

be in a form approved by the Regulator; and

be accompanied by such information as is specified in the regulations; and

be accompanied by such documents (if any) as are specified in the regulations.

any of those trustees is a foreign person; and

any of those trustees is not a foreign person;

a foreign person cannot be nominated.

the facility passes the eligible nomination test; and

the nominators are the relevant trustees.

the start day occurs in the same financial year as the day on which the nomination is made; or

the start day occurs in the financial year next following the financial year in which the nomination is made.

Cancellation of nomination

the facility passes the eligible nomination test, but the nominated trustee is not a relevant trustee; or

the facility does not pass the eligible nomination test; or

the nominated trustee has become a Chapter 5 body corporate; or

the nominated trustee has become an insolvent under administration; or

the nominated trustee has an unsatisfactory compliance record.

(a) a nomination (the original nomination) is in force in relation to a facility; and

another nomination is made in relation to the facility;

the other nomination has no effect unless it is expressed to replace the original nomination.

Revocation of nomination

(a) a nomination (the original nomination) is in force in relation to a facility; and

another nomination is made in relation to the facility; and

the other nomination is expressed to replace the original nomination;

the original nomination is taken to have been revoked at the beginning of the start day for the other nomination.

Operational control—nomination made

a nomination is in force in relation to a facility throughout a particular period; and

the facility passes the eligible nomination test at all times during the period;

the nominated trustee is taken, for the purposes of this Act, to have operational control of the facility throughout the period.

Operational control—nomination not made

no nomination is in force in relation to a facility at any time during a particular period; and

the facility passes the eligible nomination test at all times during the period;

each relevant trustee is taken, for the purposes of this Act, to have operational control of the facility throughout the period.

Notification

a nomination is in force in relation to a facility; and

the facility ceases to pass the eligible nomination test;

each nominator must, within 30 days after the cessation, notify the cessation to the Regulator unless the cessation has previously been notified to the Regulator.

Exceptions

at any time during the preceding 5 years, the person has breached a requirement under this Act to provide a report; or

at any time during the preceding 5 years, the person has provided a report under this Act that contains information that is false or misleading in a material particular; or

the following conditions are satisfied:

at any time during the preceding 5 years, a copy of an audit report of a greenhouse and energy audit relating to the person was given to the Regulator under this Act;

(ii) the report contained an adverse conclusion (within the meaning of the National Greenhouse and Energy Reporting (Audit) Determination 2009); or

at any time during the preceding 5 years, the person has breached a civil penalty provision of this Act; or

if the person is a body corporate—at any time during the preceding 5 years, an executive officer of the body corporate has breached a civil penalty provision of this Act; or

both:

at any time during the preceding 5 years, the person has done a particular act; and

the act is of a kind specified in the regulations; or

both:

at any time during the preceding 5 years, the person has omitted to do a particular act; and

the omission is of a kind specified in the regulations; or

the person has been convicted of an offence against this Act; or

if the person is a body corporate—an executive officer of the body corporate has been convicted of an offence against this Act.

Spent convictions

the corporation has previously made an application under subsection (1) or (3); and

the corporation was registered under Division 3 because of that application; and

the corporation is registered under Division 3 at the end of that year.

During that year, the corporation applies under subsection (1) to be registered under Division 3 and the corporation is so registered.

On 30 June 2010 the corporation is still registered under Division 3. The corporation is not required to make an application under subsection (1) in relation to the financial year ending on 30 June 2010.

the total amount of greenhouse gases emitted from the operation of facilities under the operational control of entities that are members of the group has a carbon dioxide equivalence of:

if the financial year starts on 1 July 2008—125 kilotonnes or more; or

if the financial year starts on 1 July 2009—87.5 kilotonnes or more; or

if the year is a later financial year—50 kilotonnes or more; or

the total amount of energy produced from the operation of facilities under the operational control of entities that are members of the group is:

if the financial year starts on 1 July 2008—500 terajoules or more; or

if the financial year starts on 1 July 2009—350 terajoules or more; or

if the year is a later financial year—200 terajoules or more; or

the total amount of energy consumed from the operation of facilities under the operational control of entities that are members of the group is:

if the financial year starts on 1 July 2008—500 terajoules or more; or

if the financial year starts on 1 July 2009—350 terajoules or more; or

if the year is a later financial year—200 terajoules or more; or

an entity that is a member of the group has operational control of a facility the operation of which during the year causes:

emission of greenhouse gases that have a carbon dioxide equivalence of 25 kilotonnes or more; or

production of energy of 100 terajoules or more; or

consumption of energy of 100 terajoules or more.

greenhouse gas emissions; or

energy production; or

energy consumption;

unless the Minister has, under subsection 10(3), determined:

methods by which the amounts of the emissions, production or consumption, as the case may be, are to be measured; or

criteria for methods by which the amounts of emissions, production or consumption, as the case may be, are to be measured.

a person is the responsible emitter for a facility during the whole or a part of a financial year; and

the facility is a designated large facility for the financial year; and

the person is not a controlling corporation;

the person must apply, in accordance with this section, to be registered under this Act.

the person has operational control of a facility of a kind specified in the safeguard rules; and

the person is not a controlling corporation.

be made to the Regulator; and

be in a form approved by the Regulator; and

set out the information specified by the safeguard rules for the purposes of this paragraph.

the name of each person registered under this Act; and

any other matters, specified in the regulations, that relate to the following:

information included in the application for registration;

whether the person has complied with provisions of this Act;

information included in a report given by the person under this Act;

information that is published under section 24;

the results of a greenhouse and energy audit carried out in relation to the person;

the safeguard provisions.

the Regulator is satisfied that section 14 permits the corporation to apply for registration; and

the corporation has applied for registration in accordance with section 15.

a reporting transfer certificate is issued to the corporation; and

the corporation is not already registered under this Division.

be in writing; and

be in a form approved by the Regulator; and

set out such information as is specified in the regulations.

in a case where the person is the controlling corporation of a group—the group is not likely to meet any of the thresholds under section 13 for:

the financial year in which the application is made; and

the next 2 financial years; and

if the person was registered under section 18AA—the person is not likely to be required to give a report to the Regulator under section 22XB at any time during the next 4 financial years; and

if the person has been issued safeguard mechanism credit units—the person has complied with any requirements specified in the safeguard rules for the purposes of this paragraph; and

the person does not hold a reporting transfer certificate; and

the person has complied with the person’s obligations under this Act.

greenhouse gas emissions; and

energy production; and

energy consumption;

from the operation of the facility during the whole, or the part, as the case may be, of that financial year.

greenhouse gas emissions; or

energy production; or

energy consumption;

unless the Minister has, under subsection 10(3), determined:

methods by which the amounts of the emissions, production or consumption, as the case may be, are to be measured; or

criteria for methods by which the amounts of emissions, production or consumption, as the case may be, are to be measured.

be given in a manner and form approved by the Regulator; and

be based on:

methods determined by the Minister under subsection 10(3); or

methods which meet criteria determined by the Minister under that subsection;

where the use of those methods satisfies any conditions specified in the determination under that subsection; and

include any information specified by the regulations for the purposes of this paragraph; and

be given to the Regulator before the end of 4 months after the end of the financial year.

do not meet any threshold; or

do not meet specified thresholds;

for a financial year to which a report relates.

they were made for the purposes of paragraph (2)(c) of this section; and

each reference in those regulations to a facility of the corporation were read as a reference to the facility to which the reporting transfer certificate relates; and

each reference in those regulations to a facility under the operational control of the corporation were read as a reference to the facility to which the reporting transfer certificate relates; and

those regulations were otherwise appropriately modified.

allow the corporation to report accurately under section 22G; and

enable the Regulator to ascertain whether the corporation has complied with the corporation’s obligations under section 22G; and

comply with the requirements of subsection (2) and the regulations made for the purposes of subsection (3).

the kinds of records; and

the form of records;

that must be kept under subsection (1).

the corporation is a member of a controlling corporation’s group; and

the corporation is not the controlling corporation;

the corporation is not entitled to make an application unless the corporation has the written consent of the controlling corporation.

Form of application

be in writing; and

be in a form approved by the Regulator; and

set out such information as is specified in the form; and

be accompanied by:

the consent of the controlling corporation mentioned in paragraph 22J(f) to the making of the application; and

if subsection (4) applies—the consent of the controlling corporation mentioned in that subsection to the making of the application; and

a written statement, signed by an executive officer of the transferor corporation mentioned in section 22J, to the effect that the transferor corporation has agreed to give the applicant such information as is necessary for the applicant to comply with obligations that will be imposed on the applicant by this Act in relation to the facility if the certificate is issued; and

such information (if any) as is specified in the regulations; and

such documents (if any) as are specified in the regulations.

refuse to consider the application; or

refuse to take any action, or any further action, in relation to the application.

the applicant passes the reporting transfer test in relation to the facility; and

the applicant has, and is likely to continue to have:

the capacity; and

the access to information;

necessary for it to comply with obligations that will be imposed on the applicant by this Act in relation to the facility if the certificate is issued; and

at least one of the following conditions has been, or is likely to be, satisfied:

during a financial year, the operation of the facility causes emissions of greenhouse gases that have a carbon dioxide equivalence of 25 kilotonnes or more;

during a financial year, the operation of the facility causes production of energy of 100 terajoules or more;

during a financial year, the operation of the facility causes consumption of energy of 100 terajoules or more; and

if the regulations specify one or more other requirements—those requirements are met.

Timing

if the Regulator requires the applicant to give further information under subsection 22KA(1) in relation to the application—within 90 days after the applicant gave the Regulator the information; or

otherwise—within 90 days after the application was made.

Refusal

the start day occurs in:

the same financial year as the day on which the certificate is issued; or

the financial year preceding the financial year in which the certificate is issued; and

each of the following has consented to the specification of the start day:

the applicant;

if a controlling corporation consented under subsection 22K(3) to the making of the application for the certificate—the controlling corporation.

a surrender of the certificate takes effect under section 22N; or

the certificate is cancelled under section 22P.

if a controlling corporation consented under subsection 22K(3) to the making of the application for the certificate—the controlling corporation has agreed to the surrender of the certificate; and

the Regulator is satisfied that there are special circumstances that warrant the giving of consent to the surrender of the certificate.

the corporation does not pass the reporting transfer test in relation to the facility concerned; or

the corporation has become a Chapter 5 body corporate; or

if the regulations specify one or more other grounds for cancellation—at least one of those grounds is applicable to the corporation.

under a contract between:

the operator; and

the second corporation;

the operator operates the facility on behalf of the second corporation; or

under a contract between:

the operator; and

the second corporation and one or more other persons;

the operator operates the facility on behalf of the second corporation and those other persons; or

the second corporation is able to control the trading or financial relationships of the operator in relation to the facility; or

the second corporation has the economic benefits from the facility; or

all of the following conditions are satisfied:

the second corporation is a participant in a joint venture;

there is one other participant in the joint venture;

the second corporation shares the economic benefits from the facility with the other participant;

the second corporation’s share equals or exceeds the share of the other participant; or

all of the following conditions are satisfied:

the second corporation is a participant in a joint venture;

there are 2 or more other participants in the joint venture;

the second corporation shares the economic benefits from the facility with the other participants;

no other participant has a share that exceeds the share of the second corporation; or

all of the following conditions are satisfied:

the second corporation is a partner in a partnership;

there is one other partner in the partnership;

the second corporation shares the economic benefits from the facility with the other partner;

the second corporation’s share equals or exceeds the share of the other partner; or

all of the following conditions are satisfied:

the second corporation is a partner in a partnership;

there are 2 or more other partners in the partnership;

the second corporation shares the economic benefits from the facility with the other partners;

no other partner has a share that exceeds the share of the second corporation; or

the second corporation is able to direct or sell the output of the facility; or

under the regulations, the second corporation is taken to have financial control over the facility.

there is a monitoring period for a facility in relation to a person; and

the net emissions number for the facility for the monitoring period exceeds the baseline emissions number for the facility for the monitoring period;

an excess emissions situation exists in relation to the facility for the monitoring period, unless an exemption declaration mentioned in subsection (2) is in force in relation to the facility and the monitoring period.

Exemption declaration

disregarding subsections 22XK(2) and (3), the net emissions number for the relevant facility for the relevant monitoring period exceeds the baseline emissions number for the facility for the monitoring period; and

that excess is the direct result of any or all of the following:

a natural disaster;

criminal activity;

circumstances that, under the safeguard rules, are taken to be exceptional circumstances for the purposes of this subsection; and

the responsible emitter:

has taken reasonable steps to mitigate risks of the relevant circumstance referred to in subparagraph (b)(i), (ii) or (iii) resulting in the situation described in paragraph (a); and

has done so both before and after the occurrence of the circumstance; and

such other conditions (if any) as are set out in the safeguard rules are satisfied.

a person is the responsible emitter for a facility throughout a financial year; and

the financial year is not included in a declared multi-year period for the facility; and

the facility is a designated large facility for the financial year;

the financial year is a monitoring period for the facility in relation to the person.

Monitoring period—part of a single financial year

a person is the responsible emitter for a facility throughout a part of a financial year; and

the financial year is not included in a declared multi-year period for the facility; and

the facility is a designated large facility for the financial year;

the part of the financial year is a monitoring period for the facility in relation to the person.

Monitoring period—declared multi-year period

there is a declared multi-year period for a facility; and

a person is the responsible emitter for the facility throughout the declared multi-year period; and

the facility is a designated large facility for at least one of the financial years included in the declared multi-year period;

the declared multi-year period is a monitoring period for the facility in relation to the person.

Monitoring period—part of a declared multi-year period

there is a declared multi-year period for a facility; and

a person is the responsible emitter for the facility throughout a part of the declared multi-year period; and

the facility is a designated large facility for at least one of the financial years included in the declared multi-year period;

the part of the declared multi-year period is a monitoring period for the facility in relation to the person.

Declared multi-year period

the total amount of covered emissions of greenhouse gases from the operation of the facility during the financial year has a carbon dioxide equivalence of a particular number of tonnes; and

that number exceeds the number specified in the safeguard rules.

a number of prescribed carbon units are surrendered on a particular occasion; and

the notice surrendering the units contains a statement to the effect that the units are being surrendered for the purpose of reducing the net emissions number for a facility for a period;

the net emissions number for the facility for the period is reduced (but not below zero) by:

if the safeguard rules provide that this paragraph applies to the surrender of those units—the number worked out in accordance with the safeguard rules for that surrender; or

otherwise—the number of units surrendered.

a person:

surrendered; or

because of safeguard rules made for the purposes of paragraph (3)(d), is taken to have surrendered;

a number of prescribed carbon units for the purpose of reducing the net emissions number for a facility for a period; and

some or all of those units:

are prescribed carbon units of a specified kind; or

satisfy specified conditions;

the net emissions number for the facility for the period is reduced (but not below zero) by a number, worked out in accordance with those rules, that is less than the number of prescribed carbon units surrendered.

a person surrendered a number of prescribed carbon units for the purpose of reducing the net emissions number for a facility for a period; and

under the safeguard rules:

there is taken to be an excess surrender situation of the person in relation to the facility for the period; and

one or more of those units are taken to be covered by the excess surrender situation;

the safeguard rules may provide that this section has effect as if:

the person had not surrendered the prescribed carbon units covered by the excess surrender situation for the purpose of reducing the net emissions number for the facility for the period; and

the person had, at a time ascertained in accordance with the safeguard rules, surrendered, in relation to a later period ascertained in accordance with the safeguard rules, some or all of the prescribed carbon units covered by the excess surrender situation for the purpose of reducing the net emissions number for the facility for that later period.

Increase—Australian carbon credit units that were issued in relation to the facility

(a) a person (the relevant person) was the responsible emitter for a facility throughout a particular period; and

(b) during that period, one or more Australian carbon credit units were issued under the Carbon Credits (Carbon Farming Initiative) Act 2011 in respect of an eligible offsets project; and

some or all of those Australian carbon credit units are attributable to carbon abatement at the facility; and

if the units covered by paragraph (c) were issued to another person:

the relevant person consented to the other person carrying out the project; and

(ii) the consent was given under regulations or legislative rules made for the purposes of paragraph 15(2)(h) or 27(4)(l) of the Carbon Credits (Carbon Farming Initiative) Act 2011;

the net emissions number for the facility for the period is increased by the total number of those Australian carbon credit units.

an Australian carbon credit unit; or

a safeguard mechanism credit unit; or

a unit that is specified in the safeguard rules.

It is immaterial whether a unit specified in the safeguard rules was issued in or outside Australia.

the unit was issued under a scheme relating to either or both of the following:

the removal of one or more greenhouse gases from the atmosphere;

the avoidance of emissions of one or more greenhouse gases; and

the unit represents carbon abatement that is able to be used to meet Australia’s climate change targets under:

the Kyoto Protocol; or

an international agreement (if any) that is the successor (whether immediate or otherwise) to the Kyoto Protocol.

For the purposes of the application of the definition of Kyoto Protocol to paragraph (b)(ii), if the Doha Amendment is not in force for Australia, the Doha Amendment is taken to be in force for Australia.

the person has complied with the requirements (if any) specified in the safeguard rules; and

the surrender meets the requirements (if any) specified in the safeguard rules; and

the period meets the requirements (if any) specified in the safeguard rules.

must include a number of:

prescribed carbon units of a specified kind; or

prescribed carbon units that satisfy specified conditions;

that is worked out in accordance with those rules; or

must not include a number of:

prescribed carbon units of a specified kind; or

prescribed carbon units that satisfy specified conditions;

that exceeds a number worked out in accordance with those rules.

specify the prescribed carbon unit or units that are being surrendered; and

set out a statement to the effect that the prescribed carbon unit or units are being surrendered for the purpose of reducing the net emissions number for the facility for the period; and

specify the account number or account numbers of the person’s Registry account, or the person’s Registry accounts, in which there is an entry or entries for the prescribed carbon unit or units that are being surrendered.

the unit is cancelled; and

the Regulator must remove the entry for the unit from the person’s Registry account in which there is an entry for the unit.

the Regulator must take such action in relation to the unit as is specified in the safeguard rules; and

the Regulator must remove the entry for the unit from the person’s Registry account in which there is an entry for the unit.

(a) a person (the relevant person) was the responsible emitter for a facility throughout a particular period; and

(b) during that period, one or more Australian carbon credit units were issued under the Carbon Credits (Carbon Farming Initiative) Act 2011 in respect of an eligible offsets project; and

some or all of those Australian carbon credit units are attributable to carbon abatement at the facility; and

if the units covered by paragraph (c) were issued to another person:

the relevant person consented to the other person carrying out the project; and

(ii) the consent was given under regulations or legislative rules made for the purposes of paragraph 15(2)(h) or 27(4)(l) of the Carbon Credits (Carbon Farming Initiative) Act 2011; and

some or all of the units covered by paragraph (c) were purchased by the Commonwealth under a carbon abatement contract;

section 22XK has effect as if:

the units covered by paragraph (e) had been surrendered by electronic notice transmitted to the Regulator under subsection (1) of this section instead of being purchased by the Commonwealth under a carbon abatement contract; and

the notice surrendering the units had contained a statement to the effect that the units are being surrendered for the purpose of reducing the net emissions number for the facility for the period.

applying for safeguard mechanism credit units to be issued;

the number of such units that may be issued to a person in relation to a facility;

how the Regulator is to determine the number of such units to be issued to a person in relation to a facility;

any conditions that may be imposed by the Regulator on a person issued with such units;

the review or reconsideration of any decision under the safeguard rules relating to the issuing of such units.

the methodology to be used by the Regulator in making a determination;

how a person may apply for a determination;

requiring an application for a determination to be accompanied by an audit report that is:

prescribed by the safeguard rules; and

prepared by a registered greenhouse and energy auditor who has been appointed as an audit team leader for that purpose.

the person is a registered person; and

the person has a Registry account.

the transfer, in specified circumstances, of safeguard mechanism credit units held in a Commonwealth Registry account because of subsection 22XNB(1) to another person’s Registry account; or

the cancellation, in specified circumstances, of such units.

a number of safeguard mechanism credit units have been issued to a person (other than the Commonwealth) in relation to a facility; and

the units were issued to the person on the basis of information given to the Regulator (whether or not by the person); and

the information was false or misleading in a material particular; and

the issue of any or all of the units was directly or indirectly attributable to the false or misleading information.

Relinquishment

one or more safeguard mechanism credit units were issued to a person on a particular occasion; and

the person has been convicted of an offence against:

(i) Criminal Code; orsection 134.1 of the

(ii) Criminal Code; orsection 134.2 of the

(iii) Criminal Code; orsection 135.1 of the

(iv) Criminal Code; orsection 135.2 of the

(v) Criminal Code; orsection 135.4 of the

(vi) Criminal Code; orsection 136.1 of the

(vii) Criminal Code; orsection 137.1 of the

(viii) Criminal Code; andsection 137.2 of the

an appropriate court is satisfied that the issue of any or all of the units was directly or indirectly attributable to the commission of the offence.

Relinquishment

to relinquish a specified number of relinquishable units not exceeding the number of safeguard mechanism credit units issued as mentioned in paragraph (1)(a); and

to do so by a specified time.

Compliance

the person is not the registered holder of any relinquishable units; or

the person is not the registered holder of the number of relinquishable units required to be relinquished.

Copy of order

the court that convicted the person of the offence;

the Federal Court of Australia;

the Supreme Court of a State or Territory.

Spent convictions

the person’s name;

details of the requirement;

if an amount payable by the person under section 22XNI in relation to non-compliance with the requirement remains unpaid after the time when the amount became due for payment—details of the unpaid amount;

if the person relinquishes one or more units to comply with the requirement—the total number of units relinquished.

the application; and

when the review by the Administrative Review Tribunal (including any court proceedings arising out of the review) has been finalised.

Subdivision C—Compliance with relinquishment requirement

a person is required under section 22XNE or 22XNF to relinquish a specified number of relinquishable units; and

the person is the registered holder of one or more relinquishable units;

the person may, by electronic notice transmitted to the Regulator, relinquish any or all of the units held by the person.

the units that are being relinquished; and

the requirement to which the relinquishment relates; and

the account number or account numbers of the person’s Registry account, or the person’s Registry accounts, in which there is an entry or entries for the units that are being relinquished.

a person is required under section 22XNE or 22XNF to relinquish a particular number of relinquishable units; and

(b) the person is required to do so by a particular time (the compliance deadline).

No units relinquished

$20;

(b) 200% of the market value of a safeguard mechanism credit unit as at the compliance deadline.

Relinquishment of insufficient units

the person has relinquished one or more units in order to comply with the requirement; and

the number of units is less than the number of units required to be relinquished;

the person is liable to pay to the Commonwealth, by way of penalty, an amount worked out using the formula:

where:

prescribed amount means the greater of the following amounts:

$20;

(b) 200% of the market value of a safeguard mechanism credit unit as at the compliance deadline.

When penalty becomes due and payable

the person is not the registered holder of any relinquishable units; or

the person is not the registered holder of the number of relinquishable units required to be relinquished.

Market value

20% per annum; or

if a lower rate per annum is specified in the safeguard rules—that lower rate per annum;

on the amount unpaid, computed from that time.

Power to remit

the Regulator is satisfied that the person did not contribute to the delay in payment and has taken reasonable steps to mitigate the causes of the delay; or

the Regulator is satisfied:

that the person contributed to the delay but has taken reasonable steps to mitigate the causes of the delay; and

having regard to the nature of the reasons that caused the delay, that it would be fair and reasonable to remit some or all of the amount; or

the Regulator is satisfied that there are special circumstances that make it reasonable to remit some or all of the amount.

on written application being made to the Regulator by a person; or

on the Regulator’s own initiative.

Refusal

the Regulator decides to refuse to remit the whole or a part of an amount payable under subsection (1); and

the Regulator made the decision in response to an application;

the Regulator must give written notice of the decision to the applicant.

an amount payable under section 22XNI;

an amount payable under section 22XNJ.

Interest on overpayment

an amount overpaid by a person is refunded by the Commonwealth under subsection (1); and

the overpayment is attributable, in whole or in part, to an error made by the Regulator;

interest calculated in accordance with subsection (3) is payable by the Commonwealth to the person in respect of the amount refunded.

in respect of the period that:

began when the overpaid amount was paid to the Commonwealth; and

ended when the amount was refunded; and

(b) at the base interest rate (Taxation Administration Act 1953).within the meaning of section 8AAD of the

a notice was given to a person under section 22XNE; and

the notice required the person to relinquish a particular number of relinquishable units; and

the person did not comply with the requirement within 90 days after the notice was given; and

proceedings for the recovery of the penalty payable under section 22XNI in respect of the non-compliance with the requirement (including any late payment penalty payable under section 22XNJ in relation to the section 22XNI penalty) are before a court; and

the decision to require the person to relinquish a specified number of relinquishable units is the subject of an application for review by the Administrative Review Tribunal.

Stay of proceedings

a court; or

a Judge; or

a magistrate;

under any other law to order a stay of proceedings.

is made by the Regulator under the safeguard rules; and

relates to the ascertainment of the baseline emissions number for a facility for a financial year.

Commencement of determination

when it is made; or

if:

an earlier day is specified in the determination; and

that day is not earlier than the financial year in which the determination was made;

on the day specified; or

if:

an earlier day is specified in the determination; and

that day is not earlier than the financial year preceding the financial year in which the determination was made; and

the effect of the determination is to increase the baseline emissions number for a facility for a financial year;

on the day specified.

Audit

prescribed by the safeguard rules; and

prepared by a registered greenhouse and energy auditor who has been appointed as an audit team leader for the purpose.

subsection (3) had not been enacted; and

the safeguard provisions did not apply except to the extent to which they relate to:

matters of international concern; or

matters external to Australia.

Limited types of responsible emitters

subsection (2) had not been enacted; and

each reference in:

section 15B; and

section 18AA; and

section 22XB; and

section 22XC; and

section 22XF; and

section 22XNA;

to a person were, by express provision, confined to a person who is:

a constitutional corporation; or

an authority of the Commonwealth.

required or permitted by this Act to be prescribed by the safeguard rules; or

necessary or convenient to be prescribed for carrying out or giving effect to the safeguard provisions.

are consistent with each of the safeguard outcomes in paragraphs 3(2)(b), (c) and (d); and

take into account the safeguard outcomes in paragraphs 3(2)(e) and (f).

are consistent with each of the safeguard outcomes in paragraphs 3(2)(b), (c) and (d); and

take into account the safeguard outcomes in paragraphs 3(2)(e) and (f).

safeguard emissions, or net safeguard emissions, for a financial year are not declining consistently with a safeguard outcome in paragraph 3(2)(b), (c) or (d) of this Act; and

the safeguard rules need to be amended in order to achieve each of those safeguard outcomes;

the Minister must:

undertake public consultation in relation to whether the safeguard rules need to be amended in order to achieve the safeguard outcomes and the content of any such amendment; and

if satisfied that the safeguard rules need to be amended in order to achieve the safeguard outcomes—amend the safeguard rules.

(a) an estimate given to the Secretary under Climate Change Act 2022; orsection 15A of the

information published under subsection 24(3B) of this Act; or

information given to the Secretary, by an agency or authority of the Commonwealth, a State or a Territory, relating to the likely covered emissions of a designated large facility for a financial year;

that the safeguard rules need to be amended in order to achieve each of the safeguard outcomes in paragraphs 3(2)(b), (c) and (d) of this Act, then:

the Secretary must advise the Minister that the Secretary is so satisfied; and

the Minister must:

undertake public consultation in relation to whether the safeguard rules need to be amended in order to achieve the safeguard outcomes and the content of any such amendment; and

if satisfied that the safeguard rules need to be amended in order to achieve the safeguard outcomes—amend the safeguard rules.

create an offence or civil penalty;

provide powers of:

arrest or detention;

entry, search or seizure;

impose a tax;

set an amount to be appropriated from the Consolidated Revenue Fund under an appropriation in this Act;

amend this Act.

as in force or existing at a particular time; or

as in force or existing from time to time.

2 or more alleged contraventions of a civil penalty provision; and

alleged contraventions of 2 or more civil penalty provisions.

However, the notice must not require the person to pay more than one penalty in respect of the same conduct.

identify the person to whom the notice is given; and

set out brief details of:

the alleged contravention of the civil penalty provision; or

if the infringement notice relates to 2 or more alleged contraventions of a civil penalty provision or alleged contraventions of 2 or more civil penalty provisions—each alleged contravention; and

contain a statement to the effect that proceedings will not be brought under this Part in relation to the alleged contravention or contraventions if the penalty specified in the notice is paid to the Regulator, on behalf of the Commonwealth, within:

28 days after the notice is given; or

if the Regulator allows a longer period—that longer period; and

contain a statement to the effect that the person to whom the notice is given may choose not to pay the penalty and, if the person does so, proceedings may be brought under this Part in relation to the alleged contravention or contraventions; and

give an explanation of how payment of the penalty is to be made; and

set out such other matters (if any) as are specified by the regulations.

the date, time and place of the contravention;

the civil penalty provision that was allegedly contravened.

one-fifth of the maximum penalty that a Court could impose on the person for that contravention;

if the person is an individual—12 penalty units;

if the person is a body corporate—60 penalty units.

one third of the maximum penalty that a Court could impose on the person for that contravention;

150,000 penalty units.

the penalty specified in the infringement notice is paid; and

the infringement notice is withdrawn after the penalty is paid;

the Commonwealth is liable to refund the penalty.

an infringement notice relating to an alleged contravention of a civil penalty provision is given to a person; and

the penalty is paid in accordance with the infringement notice; and

the infringement notice is not withdrawn.

a written undertaking that the person will take specified action, in order to comply with the provisions of this Act, the regulations or the safeguard rules;

a written undertaking that the person will refrain from taking specified action in order to comply with the provisions of this Act, the regulations or the safeguard rules;

a written undertaking that the person will take specified action directed towards ensuring that the person:

does not commit a contravention of this Act, the regulations or the safeguard rules; or

is unlikely to commit a contravention of this Act, the regulations or the safeguard rules;

in the future;

a written undertaking of a kind specified in regulations made for the purposes of this paragraph.

a person has given an undertaking under section 45; and

the undertaking has not been withdrawn or cancelled; and

the Regulator considers that the person has breached the undertaking;

the Regulator may apply to a Court for an order under subsection (2).

an order directing the person to comply with the undertaking;

an order directing the person to pay to the Regulator, on behalf of the Commonwealth, an amount up to the amount of any financial benefit that the person has obtained directly or indirectly and that is reasonably attributable to the breach;

any order that the Court considers appropriate directing the person to compensate any other person who has suffered loss or damage as a result of the breach;

any other order that the Court considers appropriate.

a body corporate contravenes a civil penalty provision; and

an executive officer of the body corporate knew that, or was reckless or negligent as to whether, the contravention would occur; and

the officer was in a position to influence the conduct of the body corporate in relation to the contravention; and

the officer failed to take all reasonable steps to prevent the contravention;

the officer contravenes this subsection.

the officer is aware of a substantial risk that the contravention would occur; and

having regard to the circumstances known to the officer, it is unjustifiable to take the risk.

such a great falling short of the standard of care that a reasonable person would exercise in the circumstances; and

such a high risk that the contravention would occur; and

that the conduct merits the imposition of a pecuniary penalty.

what action (if any) the officer took directed towards ensuring the following (to the extent that the action is relevant to the contravention):

that the body corporate arranges regular professional assessments of the body corporate’s compliance with this Act or the regulations;

that the body corporate implements any appropriate recommendations arising from such an assessment;

that the body corporate’s employees, agents and contractors have a reasonable knowledge and understanding of the requirements to comply with this Act and the regulations in so far as those requirements affect the employees, agents or contractors concerned; and

what action (if any) the officer took when he or she became aware of the contravention.

subsection 11B(20);

subsection 11C(16);

subsection 12(1);

subsection 15B(1);

subsection 19(1);

subsection 20(4);

subsection 21(4);

subsection 21A(2);

subsection 22(1);

subsection 22(2);

subsection 22G(1);

subsection 22H(1);

subsection 22X(2);

subsection 22XA(1);

subsection 22XB(1);

subsection 22XC(1);

section 22XF.

Enforceable provisions

on application by a controlling corporation; or

on the Regulator’s own initiative.

identify the controlling corporation; and

identify the facility for which a declaration is sought; and

include any other information required by the regulations; and

be given in a manner and form approved by the Regulator.

the matters dealt with in regulations made for the purposes of paragraph 9(1)(a); and

the need for each facility to be distinct from, and not overlap with, activities that constitute other facilities.

on application by a non-group entity; or

on the Regulator’s own initiative.

identify the facility for which a declaration is sought; and

include any other information required by the regulations; and

be given in a manner and form approved by the Regulator.

the matters dealt with in regulations made for the purposes of paragraph 9(1)(a); and

the need for each facility to be distinct from, and not overlap with, activities that constitute other facilities.

one or more persons enter into, begin to carry out, or carry out, a scheme; and

(b) an activity or a series of activities (including ancillary activities) (the relevant activities) that form a single undertaking or enterprise would, but for this section, be a facility for the purposes of this Act; and

(c) but for the scheme, some or all of the relevant activities would or might reasonably be expected to form all or part of a different single undertaking or enterprise (the expected undertaking or enterprise) that meets the requirements of the regulations (if any) made for the purposes of paragraph (1)(a) of the definition of facility in section 9; and

having regard to the matters specified in subsection (2) of this section, it could reasonably be concluded that the person, or any of the persons, who enter into, begin to carry out, or carry out, the scheme are doing so (or did so) solely or substantially for the purpose of:

achieving the result that, for the purposes of this Act, the relevant activities are a facility that is not a designated large facility (whether or not the relevant activities are or have previously been a designated large facility); or

achieving the result that, for the purposes of this Act, the relevant activities are a facility with a higher baseline emissions number, or fewer covered emissions, than the baseline emissions number or covered emissions (as the case may be) of the expected undertaking or enterprise; or

achieving the result that, for the purposes of this Act, the relevant activities are a facility that is attributable to an industry sector other than the industry sector to which the expected undertaking or enterprise is attributable;

the Regulator may, on the Regulator’s own initiative, declare that the expected undertaking or enterprise is a facility.

the manner in which the scheme is entered into or carried out;

the form and substance of the scheme;

the time when the scheme is entered into and the length of the period during which the scheme is carried out;

the result in relation to the operation of this Act (if any) that, but for this section, would or might reasonably be expected to be achieved by the scheme in addition to the results mentioned in paragraph (1)(d).

on application by the corporation or member; or

on the Regulator’s own initiative.

identify the corporation or member; and

identify the facility for which a declaration of operational control is sought; and

include any other information required by the regulations; and

be given in a manner and form approved by the Regulator.

operating policies;

environmental policies.

on application by the non-group entity; or

on the Regulator’s own initiative.

identify the facility for which a declaration of operational control is sought; and

include any other information required by the regulations; and

be given in a manner and form approved by the Regulator.

operating policies;

environmental policies.