Appendix A: Policy Decisions taken since the 2012-13 Budget (Continued)
Revenue Measures (Continued)
Climate Change and Energy Efficiency
Interim arrangements for the application of the carbon pricing mechanism to the Joint Petroleum Development Area and Greater Sunrise Unit Area
| 2011-12 | 2012-13 | 2013-14 | 2014-15 | 2015-16 | |
|---|---|---|---|---|---|
| Clean Energy Regulator | ‑ | * | * | * | ‑ |
The Government has effectively excluded any carbon emissions from the Joint Petroleum Development Area and Greater Sunrise Unit Area from coverage under the carbon pricing mechanism from 1 July 2012 until 30 June 2015, or until final regulations are made under the Clean Energy Act 2011. This meets our obligations with Timor‑Leste under the Timor Sea Treaty while Australia consults Timor‑Leste concerning the application of the carbon pricing mechanism. This measure is estimated to have an unquantifiable impact on revenue over the forward estimates period.
Linking the Australian carbon pricing mechanism and European Union emissions trading scheme
| 2011-12 | 2012-13 | 2013-14 | 2014-15 | 2015-16 | |
|---|---|---|---|---|---|
| Clean Energy Regulator | ‑ | ‑ | ‑ | ‑ | ‑ |
| Australian Taxation Office | ‑ | ‑ | ‑ | ‑ | ‑ |
| Australian Customs and Border Protection Service | ‑ | ‑ | ‑ | ‑ | ‑ |
| Department of Sustainability, Environment, Water, Population and Communities | ‑ | ‑ | ‑ | ‑ | ‑ |
| Total — Revenue | ‑ | ‑ | ‑ | ‑ | ‑ |
| Related expense ($m) | |||||
| Australian Taxation Office | ‑ | ‑ | ‑ | ‑ | ‑ |
The Government will proceed with an interim one‑way link between the carbon pricing mechanism (CPM) and the European Union Emissions Trading System (EU ETS). Under the interim link, Australian businesses will be able to use EU allowances (EUAs) to help meet liabilities under the Australian CPM from 1 July 2015. This measure is estimated to have no revenue impact over the forward estimates period.
To facilitate linking, the Government will make two changes to the design of the CPM:
- the price floor will not be implemented; and
- a new sub‑limit of 12.5 per cent of an entity's total liability will apply to the use of eligible Kyoto units.
The Government intends to negotiate a full two‑way link, by means of the mutual recognition of carbon units between the two cap and trade systems, to commence no later than 1 July 2018. Under this arrangement, businesses will be allowed to use carbon units from the Australian CPM or the EU ETS for compliance under either system.
The Government will also make minor amendments to the arrangements for applying an effective carbon price to liquid fuels and synthetic greenhouse gases to ensure that it is reflective of the carbon price faced by entities under the CPM.
If www.budget.gov.au responds slowly or you are having trouble downloading a document, try one of the Budget Website Mirrors
Note: Where possible, Budget documents are available in HTML and for downloading in Portable Document Format(PDF). If you require further information on any of the tables or charts on this website, please contact The Treasury.
