A Bill for an Act to set carbon emissions standards for new passenger vehicles and light commercial vehicles, and for related purposes
The Parliament of Australia enacts:
Part 1—Preliminary
1 Short title
This Act may be cited as the Motor Vehicle Standards (Cheaper Transport) Act 2014.
2 Commencement
This Act commences on the day after this Act receives the Royal Assent.
3 Definitions
In this Act:
Australia does not include:
(a) the Territory of Christmas Island; or
(b) the Territory of Cocos (Keeling) Islands.
authorised officer has the meaning given by subsection 14(3).
charge means vehicle carbon emissions charge imposed as such by any other Act.
chargeable vehicles, sold by a person in a year, means the vehicles to which the motor vehicle emissions standard applies in the year in relation to the person (see section 4).
Commonwealth authority means a corporation established for a public purpose by a law of the Commonwealth.
director, in relation to a body corporate incorporated for a public purpose by a law of the Commonwealth, of a State or of a Territory, means:
(a) a constituent member of the body; or
(b) if the body does not have any members—a member of the board or other group of persons responsible for the administration or management of the affairs of the body.
Finance Minister means the Minister administering the Public Governance, Performance and Accountability Act 2013.
import has the meaning given by the Motor Vehicle Standards Act 1989.
late‑payment penalty means the penalty mentioned in section 8.
light commercial vehicle:
(a) has the meaning given by the regulations; or
(b) if the regulations do not give a definition—means a road motor vehicle categorised as NA by the Australian Design Rule – Definitions and Vehicle Categories, as in force at the commencement of this Act.
manufacture has the meaning given by the Motor Vehicle Standards Act 1989.
new vehicle has the meaning given by the Motor Vehicle Standards Act 1989.
offence against this Act includes an offence against:
(a) section 6 of the Crimes Act 1914; or
(b) section 11.1, 11.4 or 11.5 of the Criminal Code;
that relates to an offence against this Act.
passenger vehicle:
(a) has the meaning given by the regulations; or
(b) if the regulations do not give a definition—means a road motor vehicle categorised as LA, LB, LC, LD, LE, MA, MB or MC in the Australian Design Rule – Definitions and Vehicle Categories, as in force at the commencement of this Act.
Regulator means the Clean Energy Regulator.
road motor vehicle has the meaning given by the Motor Vehicle Standards Act 1989.
specific emissions of CO2 means the CO2 emissions of a road motor vehicle measured in accordance with the regulations.
vehicle carbon emissions standard has the meaning given by section 4.
Part 2—Vehicle carbon emissions standard
4 Vehicle carbon emissions standard
(1) The vehicle carbon emissions standard is:
(a) in 2017, 2018, 2019 and 2020—130g CO2 / km; and
(b) in later years—95g CO2 / km.
Application of standard
(2) The vehicle carbon emissions standard applies in 2017 or a later year, in relation to a person, to the passenger vehicles and light commercial vehicles the person:
(a) manufactures in Australia or imports into Australia; and
(b) sells as new vehicles during the year;
if the person sells 1,000 or more such vehicles as new vehicles during the year.
(3) However, the standard does not apply to all of those vehicles if the year is mentioned in an item of the following table. Instead, it applies to only the percentage of those vehicles mentioned in that item (being the percentage with the lowest specific emissions of CO2).
| Vehicles to which standard applies in phase‑in years |
| Item | Column 1 Year | Column 2 Percentage of vehicles |
| 1 | 2017 | 70% |
| 2 | 2018 | 80% |
| 3 | 2019 | 90% |
| 4 | 2021 | 80% |
| 5 | 2022 | 90% |
Part 3—Vehicle carbon emissions charge
Division 1—Vehicle carbon emissions charge
5 Liability to charge
A person must pay the charge for a year if:
(a) the mean specific emissions of CO2 of the chargeable vehicles the person sells in the year exceeds the vehicle carbon emissions standard; and
(b) any conditions prescribed by the regulations are satisfied.
6 Amount of charge
(1) The amount of the charge the person must pay for the year is the amount worked out using the following formula multiplied by the number of chargeable vehicles the person sells in the year, if the mean specific emissions of CO2 of the vehicles exceeds the standard by more than 3g CO2 / km:
(2) The amount of the charge the person must pay for the year is the amount worked out using the following formula multiplied by the number of chargeable vehicles the person sells in the year, if the mean specific emissions of CO2 of the vehicles exceeds the standard by more than 2g CO2 / km but no more than 3g CO2 / km:
(3) The amount of the charge the person must pay for the year is the amount worked out using the following formula multiplied by the number of chargeable vehicles the person sells in the year, if the mean specific emissions of CO2 of the vehicles exceeds the standard by more than 1g CO2 / km but no more than 2g CO2 / km:
(4) The amount of the charge the person must pay for the year is the amount worked out using the following formula multiplied by the number of chargeable vehicles the person sells in the year, if the mean specific emissions of CO2 of the vehicles exceeds the standard by no more than 1g CO2 / km:
Division 2—Payment of charge and penalty for late payment of charge
7 When charge becomes due for payment
Charge becomes due for payment in accordance with the regulations.
8 Penalty for late payment of charge
(1) If charge payable by a person remains unpaid after it has become due for payment, the person is liable to pay (in addition to the charge) a prescribed penalty on the unpaid amount of charge, calculated from the day the charge became due for payment, and compounded.
(2) The regulations must not prescribe a penalty exceeding the equivalent of 1.5% of the amount of unpaid charge for each month or part of a month during which it is unpaid.
(3) Subsection (2) does not require the penalty to be calculated on a monthly basis.
(4) The fact that a judgement is entered or given in a court for the payment of charge, or of a composite amount that includes charge, does not of itself cause the charge to stop being unpaid for the purposes of subsection (1).
(5) If the judgement debt bears interest, the penalty payable under subsection (1) is reduced by the following amount:
9 Remission of late‑payment penalty
(1) If late‑payment penalty is payable in relation to charge for a year, the Regulator may remit some or all of the late‑payment penalty in the circumstances prescribed the by regulations.
(2) The person who is liable to pay the penalty may apply to the Administrative Appeals Tribunal for review of a decision of the Regulator.
10 Manner of payment
Charge and late‑payment penalty must be paid in the manner prescribed by the regulations.
11 Recovery of unpaid charge and late‑payment penalty
Unpaid charge and related late‑payment penalty may be recovered as a debt in any court of competent jurisdiction by the Regulator suing on behalf of the Commonwealth.
12 Refund of overpayment of charge or late‑payment penalty
(1) An amount of charge or late‑payment penalty that is overpaid by a person may be credited against a liability of the person to pay charge or late‑payment penalty, and must be refunded to the extent that it is not credited.
(2) Payments for the purposes of subsection (1) are to be met from funds appropriated by the Parliament for those purposes.
Division 3—Information gathering
13 Annual return to Regulator
(1) A person who sells chargeable vehicles in a year must give a written return for the year to the Regulator.
(2) The person must give the return to the Regulator by the day prescribed by the regulations.
(3) The return must be in the form approved by the Regulator. Any information that the approved form requires to be provided to the Regulator must be information that relates to this Act.
(4) The Regulator must, by the day prescribed by the regulations, publish on its website, for each person that gives to the Regulator a return under this section for a year:
(a) the mean specific emissions of CO2 of the chargeable vehicles; and
(b) any other information prescribed by the regulations.
(5) For the purposes of the Clean Energy Regulator Act 2011, this Act is treated as being a climate change law.
14 Authorised officers’ powers to seek information
(1) An authorised officer may give a person a written notice requiring the person:
(a) to give the authorised officer specified information on matters relevant to the operation of this Act within a reasonable time specified in the notice; and
(b) to verify the information by statutory declaration.
(2) The Regulator may authorise an officer in writing for the purposes of this section.
(3) In this Act:
authorised officer means any of the following authorised by the Regulator for the purposes of this section:
(a) a member of the staff of the Regulator;
(b) a person assisting the Regulator under section 37 of the Clean Energy Regulator Act 2011;
(c) an officer, member or employee of a Commonwealth authority.
15 Offences in relation to returns etc.
(1) A person must not fail to give information or a return that the person is required to give under this Act or the regulations.
Penalty: 60 penalty units.
(2) Subsection (1) does not apply if the person has a reasonable excuse.
Note: A defendant bears an evidential burden in relation to the matter in subsection (2) (see subsection 13.3(3) of the Criminal Code).
(3) The offence created by subsection (1) is an offence of strict liability.
Note: For strict liability, see section 6.1 of the Criminal Code.
(4) A person is not excused from giving a return or information on the ground that the information, or giving the return, might tend to incriminate the person. However, any information or return given, and any information or thing (including any document) obtained as a direct or indirect consequence of the giving of the return or information, is not admissible in evidence against the person in:
(a) criminal proceedings other than proceedings for an offence against subsection (1) or (5); or
(b) proceedings for recovery of an amount of late‑payment penalty.
(5) A person commits an offence if:
(a) the person presents a document, makes a statement or gives a return or information to a person carrying out functions under this Act; and
(b) the document, statement, return or information is false or misleading in a material particular.
Penalty for an offence against this subsection: Imprisonment for 12 months.
16 Conduct by directors, employees and agents
(1) Subject to subsection (2), in proceedings against a body corporate for an offence against this Act:
(a) any conduct engaged in by a director, employee or agent of the body corporate within the actual or apparent scope of his or her employment or within his or her actual or apparent authority is taken to have been engaged in also by the body corporate; and
(b) it is taken to be established that conduct (the relevant conduct) was engaged in by the body corporate if it is proved:
(i) that the directors of the body corporate engaged in the relevant conduct or expressly, tacitly or impliedly authorised or permitted the relevant conduct to be engaged in; or
(ii) that an employee or agent of the body corporate with duties of such responsibility that his or her conduct may fairly be assumed to represent the policy of the body corporate engaged in the relevant conduct or expressly, tacitly or impliedly authorised or permitted the relevant conduct to be engaged in.
(2) Subparagraph (1)(b)(ii) does not apply if the body corporate proves that it exercised due diligence to prevent the relevant conduct.
(3) Subject to subsection (4), in proceedings against an individual for an offence against this Act:
(a) any conduct engaged in by an employee or agent of the individual within the actual or apparent scope of his or her employment or within his or her actual or apparent authority is taken to have been engaged in also by the individual; and
(b) it is taken to be established that conduct (the relevant conduct) was engaged in by the individual knowingly if it is proved that an employee or agent of the individual with duties of such responsibility that his or her conduct may fairly be assumed to represent the policy of the individual knowingly engaged in the relevant conduct or expressly, tacitly or impliedly authorised or permitted the relevant conduct to be engaged in.
(4) Paragraph (3)(b) does not apply if the individual proves that he or she exercised due diligence to prevent the relevant conduct.
(5) If:
(a) an individual is convicted of an offence against this Act; and
(b) the individual would not have been convicted of the offence if subsections (3) and (4) had not been enacted;
the individual is not liable to be punished by imprisonment for the offence.
(6) A reference in this section to engaging in conduct includes a reference to failing or refusing to engage in conduct.
Division 4—Miscellaneous
17 Agreement for collecting charge and late‑payment penalty
(1) On behalf of the Commonwealth, the Finance Minister may enter into an agreement with a Commonwealth authority for the receipt or custody of charge or late‑payment penalty on behalf of the Commonwealth.
(2) The Finance Minister may delegate his or her power under subsection (1) to an SES employee or acting SES employee. The delegation must be in writing.
(3) In exercising the delegated power, the delegate is subject to any directions given by the Finance Minister.
Part 4—Miscellaneous
18 Agreements etc. by Commonwealth authorities
A Commonwealth authority may:
(a) enter into, and give effect to, an agreement under this Act; or
(b) exercise a power delegated under this Act;
whether or not the authority’s powers and functions (apart from this section) include matters covered by the agreement or delegation.
19 Review
(1) The Climate Change Authority must conduct a review of:
(a) the operation of this Act; and
(b) whether the vehicle carbon emissions standard should be amended with effect from 2024.
(2) The Minister must cause a written report of the review to be laid before each House of the Parliament before 1 January 2021.
(3) If the report sets out one or more recommendations to the Commonwealth Government:
(a) the Minister must cause to be prepared a statement setting out the Commonwealth Government’s response to each of the recommendations; and
(b) the Minister must cause copies of the statement to be tabled in each House of the Parliament before 1 July 2021.
20 Regulations
(1) The Governor‑General may make regulations prescribing matters:
(a) required or permitted by this Act to be prescribed; or
(b) necessary or convenient to be prescribed for carrying out or giving effect to this Act.
(2) The matters that may be prescribed under subsection (1) include, but are not limited to:
(a) requiring manufacturers or importers of road motor vehicles to make and keep records of their sales of vehicles; and
(b) requiring manufacturers or importers of road motor vehicles to give returns or information for the purposes of this Act; and
(c) rules of procedure in proceedings for recovery of charge or late‑payment penalty; and
(d) prescribing penalties, not exceeding a fine of 10 penalty units, for offences against the regulations.
Measurement of specific emissions of CO2
(3) The Minister must take all reasonable steps to cause regulations for the purposes of the definition of specific emissions of CO2 in section 3 to be made within 6 months after the commencement of this Act.