14 Feb 2013

Are you a large fuel user looking to manage your carbon liability?

by Graeme Dennis, Brendan Bateman, Trisha Cashmere, Robyn Farmer

The opportunity to opt in to the Carbon Price Mechanism is available for the first time in the 2013-14 financial year.

If you are:

then you may wish to take advantage of the Opt-In Scheme which allows you to meet the carbon liability associated with your fuel use through the Carbon Price Mechanism (CPM).

At present, fuel users pay an effective carbon price through the fuel tax or excise schemes under the Australian Tax Office. However, the Clean Energy Act 2001 has provisions for the users of specified taxable liquid fuels to manage their carbon liability by opting into the CPM. Under the Opt-In Scheme, a Designated Opt-In Person may choose to manage the taxable fuel liabilities of a GST group, a GST joint venture or for a particular entity.

The opportunity to opt in to the CPM is available for the first time in the 2013-14 financial year. Forms are available now on the Clean Energy Regulator website and in order to take up this opportunity for the next financial year the Regulator must declare the Designated Opt-In Person on or before 2 April 2013.

If you require any assistance with your application or further information about the operation of the Opt-In Scheme, we would be more than happy to assist.


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Clayton Utz communications are intended to provide commentary and general information. They should not be relied upon as legal advice. Formal legal advice should be sought in particular transactions or on matters of interest arising from this communication. Persons listed may not be admitted in all States and Territories.