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.

if the 1 April concerned is a business day—that 1 April; or

if the 1 April concerned is not a business day—the first business day after that 1 April.

the provisions of a legislative instrument made under this Act;

the provisions of a legislative instrument made under the regulations;

(c) sections 134.1, 134.2, 135.1, 135.2, 135.4, 136.1, 137.1 and 137.2 of the Criminal Code, in so far as those sections relate to:

this Act; or

a legislative instrument made under this Act; or

a legislative instrument made under the regulations.

if the current financial year ends before 1 July 2027—3 years before the start of the current financial year; or

otherwise—2 years before the start of the current financial year.

paragraph 18B(3)(ba);

as in force or existing at a particular time; or

as in force or existing from time to time.

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

the person is not a controlling corporation.

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

either:

at least one day in the relevant financial year is included in a monitoring period for the facility in relation to the person; or

the facility is specified in the safeguard rules; and

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;

some or all of those units:

are prescribed carbon units of a specified kind; or

satisfy specified conditions;

a safeguard mechanism credit unit; or

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;

must not include a number of:

prescribed carbon units of a specified kind; or

prescribed carbon units that satisfy specified conditions;

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.

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.

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.

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.

the court that convicted the person of the offence;

the Federal Court of Australia;

the Supreme Court of a State or Territory.

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 Appeals Tribunal (including any court proceedings arising out of the review) has been finalised.

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 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).

$20;

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

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;

$20;

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

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.

20% per annum; or

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

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.

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;

is a debt due to the Commonwealth; and

may be recovered by the Regulator, on behalf of the Commonwealth, by action in a court of competent jurisdiction.

(a) an amount (the first amount) is payable under section 22XNI or 22XNJ by a person; and

(b) the following conditions are satisfied in relation to another amount (the second amount):

the amount is payable by the Commonwealth to the person;

the amount is of a kind specified in the safeguard rules;

an amount payable under section 22XNI;

an amount payable under section 22XNJ.

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;

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 Appeals Tribunal.

a court; or

a Judge; or

a magistrate;

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;

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;

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.

as in force or existing at a particular time; or

as in force or existing from time to time.

that total amount; and

the amount of those covered emissions that were carbon dioxide, methane and nitrous oxide; and

the baseline emissions number for the facility for the financial year; and

if safeguard mechanism credit units have been issued in relation to the facility and the financial year—the number of those units; and

if a monitoring period for the facility ended during, or at the end of, the financial year—the following:

the net emissions number for the facility for that period;

the number and type of prescribed carbon units (if any) surrendered for the purpose of reducing the net emissions number for the facility for that period;

(iii) if any of those units were Australian carbon credit units issued in respect of an eligible offsets project for a reporting period (within the meaning of the Carbon Credits (Carbon Farming Initiative) Act 2011) for the project—the methodology determination (within the meaning of that Act) that applied to the project for that period.

the safeguard emissions for the financial year; and

the net safeguard emissions for the financial year; and

the 5-year rolling average safeguard emissions for the financial year; and

the total safeguard emissions for all of the financial years between 1 July 2020 and the end of the financial year.

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

150,000 penalty units.

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 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).

issue, or refuse to issue, safeguard mechanism credit units under section 22XNA;

require a relinquishment of relinquishable units under section 22XNE;

refuse to remit the whole or a part of an amount under subsection 22XNJ(2);

declare a facility under subsection 54B(1);

(a) a person is required to provide a report (the regulatory report) under section 19, 22G, 22X or 22XB for a financial year in relation to one or more facilities; and

for that financial year, the facility, or at least one of those facilities, was:

a designated large facility; or

a facility of a kind specified by the safeguard rules for the purposes of this subparagraph; and

the conditions set out in the safeguard rules are satisfied.

appoint as an audit team leader a registered greenhouse and energy auditor of the person’s choice; and

arrange for the audit team leader to carry out an audit of:

the regulatory report; and

such other matters (if any) relating to the regulatory report as are specified in the safeguard rules; and

if the regulatory report was under section 19—the person’s compliance with section 22 (about record-keeping) in relation to the financial year and so much of the report as relates to facilities to which paragraph (1)(b) of this section applies; and

if the regulatory report was under section 22G—the person’s compliance with section 22H (about record-keeping) in relation to the financial year; and

if the regulatory report was under section 22X—the person’s compliance with section 22XA (about record-keeping) in relation to the financial year; and

if the regulatory report was under section 22XB—the person’s compliance with section 22XC (about record-keeping) in relation to the financial year; and

arrange for the audit team leader to give the person a written report setting out the results of the audit; and

give the Regulator a copy of the audit report:

on the day on which the regulatory report is provided to the Regulator; and

in the manner specified in the safeguard rules.

for an individual—200 penalty units; or

otherwise—1,000 penalty units.

the type of audit to be carried out; and

the matters to be covered by the audit; and

the form of the audit report and the kinds of details it is to contain.

for an individual—50 penalty units; or

otherwise—250 penalty units.

either:

the person is the responsible member mentioned in subsection 22X(1); or

the person is the responsible emitter for a facility that is or was a designated large facility in relation to a financial year; and

either:

the person is the responsible member mentioned in subsection 22X(1); or

the person is the responsible emitter for a facility that is or was a designated large facility in relation to a financial year; and

inspection of the performance of registered greenhouse and energy auditors in carrying out ERF audits;

inspection of the performance of registered greenhouse and energy auditors in carrying out safeguard audits;

as in force or existing at a particular time; or

as in force or existing from time to time.

the activity, or series of activities, that constitutes the facility is carried on to a greater extent in the financial year than in earlier financial years; or

during the financial year, an activity, or series of activities, is included in the activity, or series of activities, that constitutes the facility for the first time.

(a) whether safeguard emissions and net safeguard emissions for the financial year to which the annual climate change statement relates are declining consistently with each of the safeguard outcomes in paragraphs 3(2)(b), (c) and (d) of the National Greenhouse and Energy Reporting Act 2007, taking into account:

the impact of any expanded designated large facilities, or new designated large facilities, for the financial year; and

the impact of any expected expanded designated large facilities, or expected new designated large facilities, for future financial years; and

any emissions estimates that are given to the Climate Change Authority under section 15A of this Act; and

if safeguard emissions, or net safeguard emissions, for the financial year are not so declining—whether any amendments to the safeguard rules are needed in order to achieve each of those safeguard outcomes.

(a) the Environment Minister approves, under the Environment Protection and Biodiversity Conservation Act 1999, the taking of an action for the purposes of a controlling provision (within the meaning of that Act); and

the Environment Minister is satisfied that the action is likely to result in:

an increase, in the financial year or future financial years, of scope 1 emissions of greenhouse gases from the operation of a designated large facility for the financial year; or

a new designated large facility for the financial year or a future financial year; and

the Environment Minister has been given an estimate of the scope 1 emissions of greenhouse gases from the taking of the action in one or more financial years for which an entity covered by subparagraph (b)(i) or (ii) is, or is likely to be, a designated large facility;

to the extent that it is with respect to one or more legislative powers of the Parliament; and

if it is not a program to subsidise the extraction of coal or natural gas.

Australian carbon credit units; and

Kyoto units.

Australian carbon credit units; and

Kyoto units; and

safeguard mechanism credit units.

Kyoto units; and

safeguard mechanism credit units.

a safeguard mechanism credit unit if legislative rules made for the purposes of this paragraph specify that kind of unit.

(a) in relation to an Australian carbon credit unit—has the same meaning as in the Carbon Credits (Carbon Farming Initiative) Act 2011; or

(b) in relation to a safeguard mechanism credit unit—has the same meaning as in the National Greenhouse and Energy Reporting Act 2007.

an Australian carbon credit unit; or

a Kyoto unit; or

a safeguard mechanism credit unit;

in relation to a Kyoto unit—has the meaning given by section 33; or

in relation to a safeguard mechanism credit unit—has the meaning given by section 48C.

to be a registry for:

Australian carbon credit units; and

safeguard mechanism credit units;

issue to the account any:

Australian carbon credit units; or

safeguard mechanism credit units; or

section 48A of this Act; or

section 48A of this Act; or

is the legal owner of the unit; and

(b) may, subject to this Act and the National Greenhouse and Energy Reporting Act 2007, deal with the unit as its legal owner and give good discharges for any consideration for any such dealing.

in good faith for value; and

without notice of any defect in the title of the registered holder.

(a) a transfer of the unit from the first Registry account to a Registry account kept by another person consists of:

the removal of the entry for the unit from the first Registry account; and

the making of an entry for the unit in the Registry account kept by the other person; and

(b) a transfer of the unit from the first Registry account to another Registry account kept by the first person consists of:

the removal of the entry for the unit from the first Registry account; and

the making of an entry for the unit in the other Registry account kept by the first person.

the transferor, by electronic notice transmitted to the Regulator, instructs the Regulator to transfer the unit from the relevant Registry account kept by the transferor to a Registry account kept by the transferee; and

the Regulator complies with that instruction.

the account number of the transferor’s Registry account; and

the account number of the transferee’s Registry account.

a declaration of transmission; and

such evidence of transmission as is specified in the legislative rules.

on written application being made to the Regulator by the transferee; or

on the Regulator’s own initiative.

the transferee does not already have a Registry account; and

in accordance with the request under regulations made for the purposes of subsection 10(1), the Regulator has opened a Registry account in the name of the transferee;

the declaration of transmission; and

the evidence mentioned in paragraph (3)(b);

the Regulator decides to:

extend the 90-day period mentioned in subsection (3); or

refuse to extend the 90-day period mentioned in subsection (3); and

the Regulator made the decision in response to an application;

(a) a person keeps a Registry account (the first Registry account) in which there is an entry for a safeguard mechanism credit unit; and

the person, by electronic notice transmitted to the Regulator, instructs the Regulator to transfer the unit from the first Registry account to another Registry account kept by the person; and

the instruction sets out:

the account number of the first Registry account; and

the account number of the other Registry account.

the creation of; or

any dealings with; or

the enforcement of;

the holders of Registry accounts; and

Kyoto units.

the holders of Registry accounts; and

Kyoto units; and

Australian carbon credit units; and

safeguard mechanism credit units.

publish on the Regulator’s website specified information about:

Australian carbon credit units for which there are entries in Registry accounts; and

the registered holders of such units; and

do so in accordance with specified requirements.

publish on the Regulator’s website specified information about:

safeguard mechanism credit units for which there are entries in Registry accounts; and

the registered holders of such units; and

do so in accordance with specified requirements.

the name of the person; and

the total number of safeguard mechanism credit units cancelled; and

such other information (if any) as is specified in the legislative rules.

a person is the registered holder of one or more safeguard mechanism credit units; and

a determination is in force under subsection (5);

specify the safeguard mechanism credit unit or units that are to be cancelled; 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 safeguard mechanism credit unit or units that are to be cancelled; and

set out such other information (if any) as is specified in the legislative rules.

if the legislative rules require the Regulator to cancel the unit—the Regulator must cancel the unit; and

if the legislative rules require the Regulator to take specified action in relation to the unit—the Regulator must take that action; 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.

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

necessary or convenient to be prescribed for carrying out or giving effect to this Act.

create an offence or civil penalty;

provide powers of:

arrest or detention; or

entry, search or seizure;

impose a tax;

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

directly amend the text of this Act.

as in force or existing at a particular time; or

as in force or existing from time to time.

do an act; or

omit to perform an act.

the person is subject to a condition mentioned in paragraph (2)(a); and

the person engages in conduct; and

the person’s conduct breaches the condition.

were issued; or

at the time of purchase, would have been issued;

selling units held in such an account;

held by the Regulator; and

specified in the legislative rules for the purposes of subsection (2).

the Climate Change Convention;

the Kyoto Protocol;

the Paris Agreement;

any other international agreement.

the project area or project areas;

the carbon estimation area, or carbon estimation areas, for the project; and

immediately before commencement, the Emissions Reduction Fund Register did not set out the project area or project areas because the Regulator had granted a request under that section in relation to the project area or project areas; or

the Regulator grants a request of a kind referred to in subitem (3) or (4) of this item in relation to the project area or project areas.

the grace period has not ended; or

the project proponent for the project makes a grace period request in relation to the carbon estimation area or carbon estimation areas and the request has not been finally determined; or

the project proponent for the project makes a grace period request in relation to the carbon estimation area or carbon estimation areas and the Regulator grants the request.

a request of a kind referred to in subitem (4) in relation to the project area or project areas for the project; or

a grace period request in relation the carbon estimation area or carbon estimation areas for the project;