An Act to impose levies on the manufacture of HCFCs, methyl bromide and SGGs under licences granted under the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989
1 Short title [see Note 1]
This Act may be cited as the Ozone Protection and Synthetic Greenhouse Gas (Manufacture Levy) Act 1995.
2 Commencement
This Act commences on 1 January 1996.
2A Definitions
In this Act:
carbon unit has the same meaning as in the Clean Energy Act 2011.
fixed charge year has the same meaning as in the Clean Energy Act 2011.
flexible charge year has the same meaning as in the Clean Energy Act 2011.
issue, in relation to a carbon unit, has the same meaning as in the Clean Energy Act 2011.
medical equipment includes a pharmaceutical product.
per‑tonne carbon price equivalent has the same meaning as in the Clean Energy Act 2011.
vintage year has the same meaning as in the Clean Energy Act 2011.
2B Carbon dioxide equivalence of an amount of an SGG
(1) For the purposes of this Act, the carbon dioxide equivalence of an amount of an SGG that is a greenhouse gas is the amount of the SGG multiplied by a value specified in the regulations in relation to that kind of SGG.
(2) For the purposes of this Act, the carbon dioxide equivalence of an amount of an SGG that is not a greenhouse gas is zero.
(3) For the purposes of this section, greenhouse gas has the same meaning as in the National Greenhouse and Energy Reporting Act 2007.
3 Interpretation
Expressions used in this Act have the same meanings as in the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989.
3A Manufacture levy—SGGs
(1) If:
(a) a controlled substances licence allows the licensee to manufacture SGGs; and
(b) the licensee manufactures an SGG during a quarter during which the licence is in force;
levy is imposed on the licensee in respect of that manufacture.
(2) Subsection (1) does not apply to the manufacture of an SGG in circumstances that are prescribed for the purposes of paragraph 13(1A)(b) of the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989.
(3) Subsection (1) does not apply to the manufacture of an SGG that is to be used for a purpose prescribed by the regulations.
(4) For the purposes of this section, if a licence is in force for only part of a particular quarter, that part is taken to be a quarter.
(5) The amount of levy imposed by subsection (1) on a licensee in respect of the manufacture of an SGG in a quarter is the amount worked out using the following formula:
where:
applicable charge means:
(a) if the quarter is in a fixed charge year—the per unit charge applicable under subsection 100(1) of the Clean Energy Act 2011 for the issue of a carbon unit with a vintage year of that fixed charge year; or
(b) if the quarter is in a flexible charge year—the per‑tonne carbon price equivalent most recently published under section 196A of the Clean Energy Act 2011 before the start of the quarter.
prescribed rate means the rate prescribed by the regulations.
(6) The prescribed rate must not exceed $165 per tonne.
(7) If:
(a) levy is imposed by subsection (1) on a licensee in respect of the manufacture of an SGG; and
(b) the Minister is satisfied that the SGG:
(i) is to be used in medical equipment; or
(ii) is to be used in the manufacture of medical equipment; or
(iii) is to be used in a product, or in equipment, prescribed for the purposes of paragraph 8D(1)(c) of the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989; or
(iv) is to be used in the manufacture of a product, or of equipment, specified in an instrument in force under paragraph 8D(1)(d) of that Act; or
(v) is to be used for a purpose prescribed by the regulations;
the Minister may, by written notice given to the licensee, determine that the licensee is exempt from the carbon charge component of the amount of the levy.
(8) For the purposes of subsection (7), the carbon charge component of the amount of the levy is so much of that amount as is equal to the amount worked out using the following formula:
where:
applicable charge means the charge that is the applicable charge for the purposes of the application of subsection (5) to the levy.
(9) In making a determination under subsection (7), the Minister must have regard to such matters as are specified in the regulations.
(10) The Minister must not make a recommendation to the Governor‑General about regulations to be made for the purposes of subsection (3) unless the Minister is satisfied that:
(a) it would be impracticable to impose levy on the manufacture of an SGG that is to be used for a purpose to be prescribed by those regulations; or
(b) a purpose to be prescribed by those regulations is a medical, veterinary, health or safety purpose.
(11) The Minister must not make a recommendation to the Governor‑General about regulations to be made for the purposes of subparagraph (7)(b)(v) unless the Minister is satisfied that:
(a) it would be impracticable to require payment of the carbon charge component of the amount of levy imposed on the manufacture of an SGG that is to be used for a purpose to be prescribed by those regulations; or
(b) a purpose to be prescribed by those regulations is a medical, veterinary, health or safety purpose.
4 Manufacture levy—substances other than SGGs
(1) If:
(a) a controlled substances licence allows the licensee to manufacture a substance or substances (other than an SGG); and
(b) the licensee manufactures any such substance during a quarter during which the licence is in force;
then levy is imposed on the licensee in respect of that manufacture at the rate prescribed by the regulations.
(3) For the purposes of subsection (1), if a licence is in force for only part of a particular quarter, that part is taken to be a quarter.
(4) The rate of levy prescribed by the regulations cannot exceed:
(a) for HCFCs—$3,000 per ODP tonne; and
(c) for methyl bromide—$135 per tonne.
Note: For the purposes of paragraph (a), the method of calculating ODP tonnes is set out in section 10 of the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989.
5 Regulations
The Governor-General may make regulations for the purposes of section 3A or 4.
