Carbon Pricing Act 2018 · 2020 Revised Edition · Part 5 · Carbon Pricing
20E. Awards of allowances
Feedback & supportLast amended by an amending law of 2022.
The Minister must, in an award of allowances for any taxable facility, specify —
Minister
“Minister” means —(a)except as provided in paragraph (b), the Minister charged with the responsibility for sustainability and the environment; and(b)for the purposes of Division 1A of Part 5, the Minister charged with the responsibility for trade and industry;
the emissions years in respect of which the taxable facility is entitled to allowances; and
the methodology by which the amount of allowance for each such emissions year is to be calculated.
In devising the methodology for any emissions year, the Minister may —
adopt or take into consideration any or any combination of the following sub-paragraphs (including any part thereof):
the whole or any part (with or without modification) of any matter relevant to GHG emissions or intensity, or energy use or efficiency, including any internationally‑recognised benchmark;
any other matter that the Minister considers appropriate for the purpose of incentivising the continued reduction in the GHG emissions of the taxable facility; and
provide for a maximum amount of allowance for any emissions year, determined —
by prescribing that the tax chargeable for an emissions year (calculated based on the formula (A – C) × B in section 20C) must not, when divided by A for that emissions year, result in an amount that is less than the amount specified by the Minister in the award for this purpose; or
in any other manner that the Minister considers appropriate to incentivise the continued reduction in GHG emissions of the taxable facility.
For the purposes of subsection (2), the Minister may devise different methodologies for —
different taxable facilities;
different classes of taxable facilities; (c)different emissions years (including with respect to the same taxable facility); or
different circumstances.
The Minister may at any time, in respect of any emissions year for which a taxable facility is entitled to an allowance under an award of allowances, amend the award of allowances by —
taxable facility
“taxable facility” means a business facility that is registered as a taxable facility under section 7;
modifying the methodology specified for the emissions year; or (b)substituting some other methodology for the emissions year,in any circumstances that the Minister thinks appropriate, including where the original methodology ceases to be internationally‑recognised, or ceases to be valid or applicable, or ceases to have or is reduced in its relevance, in relation to the registered person or the business for which the taxable facility is used.
The modified or substituted methodology must not be applied in respect of any emissions year for which the Agency has made an assessment of tax under Division 2 of Part 5, but may be so applied if the assessment is being revised under section 23.
Agency
“Agency” means the National Environment Agency established by the National Environment Agency Act 2002;
The Minister must, in respect of each emissions year mentioned in subsection (1)(a), determine the amount of the allowance for that emissions year in accordance with the methodology mentioned in subsection (1)(b) for that emissions year.
allowance
“allowance”, in relation to a taxable facility that is eligible for an allowance for an emissions year, means the amount by which the total amount of reckonable GHG emissions of the taxable facility in the emissions year may be reduced for the purpose only of determining the amount of the tax chargeable for the emissions year, in accordance with an award of allowances given by the Minister under section 20E;