CLEAN ENERGY (CONSEQUENTIAL AMENDMENTS) BILL 2011

i Clean Energy (Consequential Amendments) Bill 2011 No. , 2011

Contents

1 Short

title

...........................................................................................

2 Commencement

.................................................................................

3 Schedule(s)

........................................................................................

Schedule 1--General amendments

Part 1--Amendments commencing at the same time as

section 3 of the Clean Energy Act 2011 commences

Division 1--Amendments

Anti-Money Laundering and Counter-Terrorism Financing Act 2006

Australian National Registry of Emissions Units Act 2011

Australian Securities and Investments Commission Act 2001

Carbon Credits (Carbon Farming Initiative) Act 2011

Competition and Consumer Act 2010

Financial Management and Accountability Regulations 1997

National Greenhouse and Energy Reporting Act 2007

Ozone Protection and Synthetic Greenhouse Gas Management Act

1989

Renewable Energy (Electricity) Act 2000

Taxation Administration Act 1953

Division 2--Transitional provisions

Part 2--Amendments commencing on 1 July 2012

Division 1--Amendments

Australian National Registry of Emissions Units Act 2011

Australian Securities and Investments Commission Act 2001

Carbon Credits (Carbon Farming Initiative) Act 2011

Competition and Consumer Act 2010

Corporations Act 2001

Evidence Act 1995

Financial Management and Accountability Regulations 1997

National Greenhouse and Energy Reporting Act 2007

Ozone Protection and Synthetic Greenhouse Gas Management Act

1989

103

Clean Energy (Consequential Amendments) Bill 2011 No. , 2011 ii

Renewable Energy (Electricity) Act 2000

120

Division 2--Application and transitional provisions

122

Schedule 2--Taxation amendments

126

Part 1--Amendments relating to GST

126

A New Tax System (Goods and Services Tax) Act 1999

126

Part 2--Amendments commencing at the same time as

section 3 of the Clean Energy Act 2011 commences

127

Income Tax Assessment Act 1936

127

Income Tax Assessment Act 1997

127

Income Tax (Transitional Provisions) Act 1997

170

Taxation Administration Act 1953

172

Part 3--Amendments commencing on 1 July 2015

173

Income Tax Assessment Act 1997

173

Schedule 3--Amendments relating to renewable energy

certificates

174

Renewable Energy (Electricity) Act 2000

174

Schedule 4--Amendments relating to the Australian National

Registry of Emissions Units

177

Australian National Registry of Emissions Units Act 2011

177

Schedule 5--Amendments relating to the Carbon Farming

Initiative

195

Carbon Credits (Carbon Farming Initiative) Act 2011

195

Clean Energy (Consequential Amendments) Bill 2011 No. , 2011 1

A Bill for an Act to deal with consequential matters

arising from the enactment of the Clean Energy Act

2011, and for other purposes

The Parliament of Australia enacts:

1 Short title

This Act may be cited as the Clean Energy (Consequential

Amendments) Act 2011.

2 Commencement

(1) Each provision of this Act specified in column 1 of the table

commences, or is taken to have commenced, in accordance with

column 2 of the table. Any other statement in column 2 has effect

according to its terms.

2 Clean Energy (Consequential Amendments) Bill 2011 No. , 2011

Commencement information

Column 1

Column 2

Column 3

Provision(s) Commencement

Date/Details

1. Sections 1 to 3

and anything in

this Act not

elsewhere covered

by this table

The day this Act receives the Royal Assent.

2. Schedule 1,

Part 1

At the same time as section 3 of the Clean

Energy Act 2011 commences.

3. Schedule 1,

Part 2

1 July 2012.

1 July 2012

4. Schedule 2,

Part 1

The later of:

(a) the day after the Treasurer announces by

notice in the Gazette that the States, the

Australian Capital Territory and the

Northern Territory have agreed to

amendments made by the provision(s);

and

(b) the day section 3 of the Clean Energy

Act 2011 commences.

A notice under paragraph (a) is not a

legislative instrument.

5. Schedule 2,

Part 2

At the same time as section 3 of the Clean

Energy Act 2011 commences.

6. Schedule 2,

Part 3

1 July 2015.

1 July 2015

7. Schedule 3

The day after this Act receives the Royal

Assent.

8. Schedule 4

The later of:

(a) the day this Act receives the Royal

Assent; and

(b) the day section 3 of the Australian

National Registry of Emissions Units Act

2011 commences.

9. Schedule 5

The later of:

(a) the day this Act receives the Royal

Assent; and

(b) the day section 3 of the Carbon Credits

Clean Energy (Consequential Amendments) Bill 2011 No. , 2011 3

Commencement information

Column 1

Column 2

Column 3

Provision(s) Commencement

Date/Details

(Carbon Farming Initiative) Act 2011

commences.

Note:

This table relates only to the provisions of this Act as originally

enacted. It will not be amended to deal with any later amendments of

this Act.

(2) Any information in column 3 of the table is not part of this Act.

Information may be inserted in this column, or information in it

may be edited, in any published version of this Act.

3 Schedule(s)

(1) Each Act, and each set of regulations, that is specified in a

Schedule to this Act is amended or repealed as set out in the

applicable items in the Schedule concerned, and any other item in a

Schedule to this Act has effect according to its terms.

(2) The amendment of any regulation under subsection (1) does not

prevent the regulation, as so amended, from being amended or

repealed by the Governor-General.

Schedule 1 General amendments

Part 1 Amendments commencing at the same time as section 3 of the Clean Energy

Act 2011 commences

4 Clean Energy (Consequential Amendments) Bill 2011 No. , 2011

Schedule 1--General amendments

Part 1--Amendments commencing at the same time

as section 3 of the Clean Energy Act 2011

commences

Division 1--Amendments

Anti-Money Laundering and Counter-Terrorism Financing

Act 2006

1 Section 5

Insert:

carbon unit has the same meaning as in the Clean Energy Act

2011.

2 Subsection 6(2) (after paragraph (b) of the cell at table

item 33, column headed "Provision of a designated service")

Insert:

(baa) a carbon unit; or

3 Subsection 6(2) (paragraph (d) of the cell at table item 33,

column headed "Provision of a designated service")

After "derivatives,", insert "carbon units,".

Australian National Registry of Emissions Units Act 2011

5 Section 4 (definition of Administrator)

Repeal the definition.

6 Section 4 (definition of electronic notice transmitted to the

Administrator)

Repeal the definition.

7 Section 4

Insert:

General amendments Schedule 1

Amendments commencing at the same time as section 3 of the Clean Energy Act 2011

commences Part 1

Clean Energy (Consequential Amendments) Bill 2011 No. , 2011 5

electronic notice transmitted to the Regulator has the meaning

given by section 5.

13 Section 4

Insert:

Regulator means the Clean Energy Regulator.

15 Section 5

Omit "Administrator", substitute "Regulator".

43 Subsection 85(1)

Omit "his or her", substitute "its".

44 Subsection 85(2)

Omit "he or she", substitute "the Regulator".

45 Subsection 85(2)

Omit "his or her", substitute "its".

46 Bulk amendments--references to the Administrator etc.

The Australian National Registry of Emissions Units Act 2011 is

amended as follows:

(a) by omitting "the Administrator" (wherever occurring) and

substituting "the Regulator";

(b) by omitting "The Administrator" (wherever occurring) and

substituting "The Regulator";

substituting "the Regulator's";

(d) by omitting "The Administrator's" (wherever occurring) and

substituting "The Regulator's";

(e)

omitting

"Administrator" (wherever occurring) and

substituting "Regulator";

(f)

omitting

"Administrator" (wherever occurring) and

substituting "Regulator";

(g)

omitting

"Administrator's" (wherever occurring) and

substituting "Regulator's".

Schedule 1 General amendments

Part 1 Amendments commencing at the same time as section 3 of the Clean Energy

Act 2011 commences

6 Clean Energy (Consequential Amendments) Bill 2011 No. , 2011

Australian Securities and Investments Commission Act 2001

47 After paragraph 12BAA(7)(k)

Insert:

(ka) a carbon unit;

48 Paragraph 12BAB(1)(g)

After "other than", insert "a carbon unit,".

49 Paragraph 127(2A)(e)

Omit "Carbon Credits Administrator", substitute "Clean Energy

Regulator".

Carbon Credits (Carbon Farming Initiative) Act 2011

51 Section 4

Omit "Carbon Credits Administrator", substitute "Clean Energy

Regulator".

52 Section 5 (definition of Administrator)

Repeal the definition.

53 Section 5 (definition of electronic notice transmitted to the

Administrator)

Repeal the definition.

54 Section 5

Insert:

electronic notice transmitted to the Regulator has the meaning

given by section 7.

55 Section 5 (paragraphs (a) to (e) of the definition of

entrusted public official)

Repeal the paragraphs.

56 Section 5 (definition of protected Administrator

information)

Repeal the definition.

General amendments Schedule 1

Amendments commencing at the same time as section 3 of the Clean Energy Act 2011

commences Part 1

Clean Energy (Consequential Amendments) Bill 2011 No. , 2011 7

57 Section 5

Insert:

protected audit information means protected information that was

obtained by a person in the person's capacity as:

(a) an audit team leader; or

(b) a person assisting an audit team leader.

58 Section 5

Insert:

Regulator means the Clean Energy Regulator.

59 Subsection 7(1)

Omit "Administrator", substitute "Regulator".

61 Subsection 243(1)

Omit "his or her", substitute "its".

62 Subsection 243(2)

Omit "her or she", substitute "the Regulator".

63 Subsection 243(2)

Omit "his or her", substitute "its".

64 Part 25

Repeal the Part.

65 At the end of section 270

Add:

Note:

See also the Clean Energy Regulator Act 2011, which deals with the

use and disclosure of information by officials of the Clean Energy

Regulator.

66 Section 274

Repeal the section.

67 Subsection 275(2)

Omit "Administrator" (first occurring), substitute "Regulator".

Schedule 1 General amendments

Part 1 Amendments commencing at the same time as section 3 of the Clean Energy

Act 2011 commences

8 Clean Energy (Consequential Amendments) Bill 2011 No. , 2011

68 Subsection 275(2)

Omit "protected Administrator information", substitute "protected audit

information".

69 Paragraphs 275(2)(a) to (e)

Repeal the paragraphs.

70 Subsection 276(1)

Omit "the Administrator is satisfied that particular protected

Administrator information", substitute "the Regulator is satisfied that

particular protected audit information".

71 Paragraph 276(1)(a)

Repeal the paragraph.

72 Subsection 276(2)

Repeal the subsection (not including the heading).

73 Paragraphs 276(3)(a) to (d)

Repeal the paragraphs.

74 Subsection 276(3)

Omit "by the Administrator", substitute "by the Regulator".

75 Subsection 276(3)

Omit "protected Administrator information", substitute "protected audit

information".

76 Paragraph 276(4)(b)

Repeal the paragraph, substitute:

(b) protected audit information has been disclosed under

subsection (3) to the body; and

77 Subsection 276(5)

Omit "Administrator", substitute "Regulator".

78 Subsection 276(6)

Repeal the subsection, substitute:

General amendments Schedule 1

Amendments commencing at the same time as section 3 of the Clean Energy Act 2011

commences Part 1

Clean Energy (Consequential Amendments) Bill 2011 No. , 2011 9

Conditions

(6) The Regulator may, by writing, impose conditions to be complied

with in relation to protected audit information disclosed under

subsection (3).

79 Subsection 277(1)

Omit "the Administrator is satisfied that particular protected

Administrator information", substitute "the Regulator is satisfied that

particular protected audit information".

80 Subsection 277(2)

Repeal the subsection (not including the heading).

81 Paragraphs 277(3)(a) to (d)

Repeal the paragraphs.

82 Subsection 277(3)

Omit "by the Administrator", substitute "by the Regulator".

83 Subsection 277(3)

Omit "protected Administrator information", substitute "protected audit

information".

84 Paragraph 277(4)(b)

Repeal the paragraph, substitute:

(b) protected audit information has been disclosed under

subsection (3) to the body corporate; and

85 Paragraph 277(5)(a)

Omit "Administrator", substitute "Regulator".

86 Subsection 277(6)

Repeal the subsection, substitute:

Conditions

(6) The Regulator may, by writing, impose conditions to be complied

with by the body corporate and its officers, employees and agents

Schedule 1 General amendments

Part 1 Amendments commencing at the same time as section 3 of the Clean Energy

Act 2011 commences

10 Clean Energy (Consequential Amendments) Bill 2011 No. , 2011

in relation to protected audit information disclosed to the body

corporate under subsection (3).

87 Paragraphs 281(a) to (e)

Repeal the paragraphs.

88 Paragraphs 281(h) and (i)

Omit "protected Administrator information", substitute "protected audit

information".

88A Section 282 (heading)

Repeal the heading, substitute:

282 Disclosure for purposes of law enforcement--protected audit

information

89 Subsection 282(1)

Omit "the Administrator is satisfied that disclosure of particular

protected Administrator information", substitute "the Regulator is

satisfied that disclosure of particular protected audit information".

90 Subsection 282(2)

Repeal the subsection (not including the heading).

91 Paragraphs 282(3)(a) to (d)

Repeal the paragraphs.

92 Subsection 282(3)

Omit "by the Administrator", substitute "by the Regulator".

93 Subsection 282(3)

Omit "protected Administrator information", substitute "protected audit

information".

94 Paragraph 282(4)(b)

Repeal the paragraph, substitute:

(b) protected audit information has been disclosed under

subsection (3) to the Department, agency, authority or police

force, as the case may be; and

General amendments Schedule 1

Amendments commencing at the same time as section 3 of the Clean Energy Act 2011

commences Part 1

Clean Energy (Consequential Amendments) Bill 2011 No. , 2011 11

95 Paragraph 282(5)(a)

Omit "Administrator", substitute "Regulator".

96 Subsection 282(6)

Repeal the subsection, substitute:

Conditions

(6) The Regulator may, by writing, impose conditions to be complied

with in relation to protected audit information disclosed under

subsection (3).

97 Section 285

Repeal the section.

99 Bulk amendments--references to the Administrator etc.

The Carbon Credits (Carbon Farming Initiative) Act 2011 other than

the following provisions:

(a) the definition of entrusted public official in section 5;

(b) the definition of protected Administrator information in

section 5;

(c)

Part

25;

(d) sections 274 to 277;

(e) sections 281 and 282;

(f)

section

285;

is amended as follows:

(g) by omitting "the Administrator" (wherever occurring) and

substituting "the Regulator";

(h) by omitting "The Administrator" (wherever occurring) and

substituting "The Regulator";

(i) by omitting "the Administrator's" (wherever occurring) and

substituting "the Regulator's";

(j) by omitting "The Administrator's" (wherever occurring) and

substituting "The Regulator's";

(k)

omitting

"Administrator" (wherever occurring) and

substituting "Regulator";

(l)

omitting

"Administrator's" (wherever occurring) and

substituting "Regulator's".

Schedule 1 General amendments

Part 1 Amendments commencing at the same time as section 3 of the Clean Energy

Act 2011 commences

12 Clean Energy (Consequential Amendments) Bill 2011 No. , 2011

Competition and Consumer Act 2010

100 After paragraph 44AAF(3)(c)

Insert:

(ca) the Clean Energy Regulator;

101 Paragraph 44AAF(3)(d)

Omit "(b) or (c)", substitute "(b), (c) or (ca)".

102 Paragraph 155AAA(12)(la)

Omit "Carbon Credits Administrator", substitute "Clean Energy

Regulator".

Financial Management and Accountability Regulations 1997

104 Part 1 of Schedule 1 (after table item 132)

Insert:

133

Clean Energy Regulator, comprising:

(a) the Chair and the other members of the Clean

Energy Regulator; and

(b) the staff mentioned in section 36 of the Clean

Energy Regulator Act 2011; and

to the Clean Energy Regulator under

section 37 of that Act; and

(d) the consultants engaged under subsection

38(1) of that Act.

See Note B

Chair

105 Part 1 of Schedule 1 (table item 173)

Repeal the item.

National Greenhouse and Energy Reporting Act 2007

106 Section 7 (definition of Greenhouse and Energy Data

Officer)

Repeal the definition.

General amendments Schedule 1

Amendments commencing at the same time as section 3 of the Clean Energy Act 2011

commences Part 1

Clean Energy (Consequential Amendments) Bill 2011 No. , 2011 13

107 Section 7 (definition of greenhouse and energy

information)

Omit "Greenhouse and Energy Data Officer", substitute "Regulator".

108 Section 7

Insert:

official of the Regulator has the same meaning as in the Clean

Energy Regulator Act 2011.

109 Section 7

Insert:

protected information has the same meaning as in the Clean

Energy Regulator Act 2011.

110 Section 7

Insert:

Regulator means the Clean Energy Regulator.

111 Paragraph 9(1)(b)

Omit "Greenhouse and Energy Data Officer", substitute "Regulator".

112 Paragraph 11(1)(b)

Omit "Greenhouse and Energy Data Officer", substitute "Regulator".

113 Paragraph 15(a)

Omit "Greenhouse and Energy Data Officer", substitute "Regulator".

114 Subsections 16(1), (3) and (4)

Omit "Greenhouse and Energy Data Officer" (wherever occurring),

substitute "Regulator".

115 Subsections 17(1), (2), (3), (3A) and (4)

Omit "Greenhouse and Energy Data Officer" (wherever occurring),

substitute "Regulator".

116 Subsections 18(1) and (3)

Schedule 1 General amendments

Part 1 Amendments commencing at the same time as section 3 of the Clean Energy

Act 2011 commences

14 Clean Energy (Consequential Amendments) Bill 2011 No. , 2011

Omit "Greenhouse and Energy Data Officer" (wherever occurring),

substitute "Regulator".

117 Subsection 18(4)

Omit "Greenhouse and Energy Data Officer", substitute "Regulator".

118 Subsection 18(4)

Omit "his or her", substitute "the Regulator's".

119 Subsection 18(5)

Omit "Greenhouse and Energy Data Officer", substitute "Regulator".

119A Section 19 (heading)

Repeal the heading, substitute:

19 Report to be given to the Regulator

120 Subsection 19(1)

Omit "Greenhouse and Energy Data Officer" (wherever occurring),

substitute "Regulator".

121 Subsections 19(6) and (9)

Omit "Greenhouse and Energy Data Officer" (wherever occurring),

substitute "Regulator".

122 Subsection 20(1)

Omit "Greenhouse and Energy Data Officer", substitute "Regulator".

123 Subsections 20(2) and (3)

Omit "Greenhouse and Energy Data Officer", substitute "Regulator".

124 Subsections 20(4) and (5)

Omit "Greenhouse and Energy Data Officer" (wherever occurring),

substitute "Regulator".

125 Subsection 21(1)

Omit "Greenhouse and Energy Data Officer" (wherever occurring),

substitute "Regulator".

General amendments Schedule 1

Amendments commencing at the same time as section 3 of the Clean Energy Act 2011

commences Part 1

Clean Energy (Consequential Amendments) Bill 2011 No. , 2011 15

126 Subsection 21(4) (note)

Omit "Greenhouse and Energy Data Officer", substitute "Regulator".

127 Subsection 21(6)

Omit "Greenhouse and Energy Data Officer" (wherever occurring),

substitute "Regulator".

128 Subsection 21A(1)

Omit "Greenhouse and Energy Data Officer", substitute "Regulator".

129 Subsection 21A(2) (note)

Omit "Greenhouse and Energy Data Officer", substitute "Regulator".

130 Subsection 21A(3)

Omit "Greenhouse and Energy Data Officer" (wherever occurring),

substitute "Regulator".

131 Paragraphs 22(1)(b) and (2)(b)

Omit "Greenhouse and Energy Data Officer", substitute "Regulator".

131A Section 22G (heading)

Repeal the heading, substitute:

22G Report to be given to the Regulator

132 Subsections 22G(1) and (2)

Omit "Greenhouse and Energy Data Officer" (wherever occurring),

substitute "Regulator".

133 Subsection 22G(5)

Omit "Greenhouse and Energy Data Officer", substitute "Regulator".

134 Paragraph 22H(1)(b)

Omit "Greenhouse and Energy Data Officer", substitute "Regulator".

135 Subsection 22K(2)

Omit "Greenhouse and Energy Data Officer", substitute "Regulator".

136 Paragraph 22K(5)(b)

Schedule 1 General amendments

Part 1 Amendments commencing at the same time as section 3 of the Clean Energy

Act 2011 commences

16 Clean Energy (Consequential Amendments) Bill 2011 No. , 2011

Omit "Greenhouse and Energy Data Officer", substitute "Regulator".

137 Subsection 22KA(1)

Omit "Greenhouse and Energy Data Officer" (wherever occurring),

substitute "Regulator".

138 Subsection 22KA(2)

Omit "Greenhouse and Energy Data Officer", substitute "Regulator".

139 Subsection 22L(2)

Omit "Greenhouse and Energy Data Officer", substitute "Regulator".

140 Subsections 22L(3), (4) and (5)

Omit "Greenhouse and Energy Data Officer" (wherever occurring),

substitute "Regulator".

141 Subsections 22N(2) and (3)

Omit "Greenhouse and Energy Data Officer", substitute "Regulator".

142 Subsection 22N(4)

Omit "Greenhouse and Energy Data Officer" (wherever occurring),

substitute "Regulator".

143 Subsection 22P(2)

Omit "Greenhouse and Energy Data Officer" (wherever occurring),

substitute "Regulator".

144 After paragraph 23(1)(a)

Insert:

(aa) the information is not protected information; and

145 Paragraphs 23(2)(a) and (b)

Repeal the paragraphs.

145A Paragraph 23(2)(g)

Omit "is disclosed under section 26", substitute "was disclosed under

repealed section 26".

146 At the end of section 23

General amendments Schedule 1

Amendments commencing at the same time as section 3 of the Clean Energy Act 2011

commences Part 1

Clean Energy (Consequential Amendments) Bill 2011 No. , 2011 17

Add:

Note:

See also Part 3 of the Clean Energy Regulator Act 2011 (secrecy

obligations of officials of the Regulator).

147 Subsections 24(1) and (1A)

Omit "Greenhouse and Energy Data Officer", substitute "Regulator".

148 Subsection 24(1AD)

Omit "Greenhouse and Energy Data Officer" (wherever occurring),

substitute "Regulator".

149 Subsections 24(1AE), (1B) and (1C)

Omit "Greenhouse and Energy Data Officer", substitute "Regulator".

150 Subsection 24(1C)

Omit "he or she", substitute "the Regulator".

151 Subsection 24(1F)

Omit "Greenhouse and Energy Data Officer", substitute "Regulator".

152 Subsection 24(1G)

Omit "Greenhouse and Energy Data Officer" (wherever occurring),

substitute "Regulator".

153 Subsections 24(2) and (3)

Omit "Greenhouse and Energy Data Officer", substitute "Regulator".

153A Subsections 24(5) and (6)

Repeal the subsections, substitute:

Publication by States or Territories

(5) A State or Territory, or an authority of a State or Territory, may

publish information disclosed to it under subsection 27(1) if the

publication of the information is required under a law of the State

or Territory.

(5A) A State or Territory, or an authority of a State or Territory, may

publish information disclosed to it under subsection 27(1) if the

Schedule 1 General amendments

Part 1 Amendments commencing at the same time as section 3 of the Clean Energy

Act 2011 commences

18 Clean Energy (Consequential Amendments) Bill 2011 No. , 2011

information is in an aggregated form that does not disclose, either

directly or indirectly, information about a specific:

(a) registered corporation; or

(b) registered corporation's group; or

(d)

facility.

Publication by other persons

(6) A person may publish greenhouse and energy information

disclosed to it under Part 3 of the Clean Energy Regulator Act

2011 if the information is in an aggregated form that does not

disclose, either directly or indirectly, information about a specific:

(a) registered corporation; or

(b) registered corporation's group; or

(d)

facility.

154 Subsections 25(1), (2), (3) and (4)

Omit "Greenhouse and Energy Data Officer", substitute "Regulator".

155 Section 26

Repeal the section.

158 Subsections 27(1), (1A) and (2)

Omit "Greenhouse and Energy Data Officer" (wherever occurring),

substitute "Regulator".

159 Subsections 28(1), (2) and (3)

Omit "Greenhouse and Energy Data Officer", substitute "Regulator".

160 Subsection 31(1)

Omit "Greenhouse and Energy Data Officer", substitute "Regulator".

161 Subsection 39(1)

Omit "Greenhouse and Energy Data Officer" (wherever occurring),

substitute "Regulator".

162 Paragraph 40(1)(c)

General amendments Schedule 1

Amendments commencing at the same time as section 3 of the Clean Energy Act 2011

commences Part 1

Clean Energy (Consequential Amendments) Bill 2011 No. , 2011 19

Omit "Greenhouse and Energy Data Officer" (wherever occurring),

substitute "Regulator".

163 Subsection 42(2)

Omit "Greenhouse and Energy Data Officer", substitute "Regulator".

164 Subsections 45(1), (3) and (4)

Omit "Greenhouse and Energy Data Officer", substitute "Regulator".

165 Subsections 46(1) and (2)

Omit "Greenhouse and Energy Data Officer" (wherever occurring),

substitute "Regulator".

166 Division 1 of Part 6

Repeal the Division.

167 Division 2 of Part 6 (heading)

Repeal the heading, substitute:

Division 2--Decisions by the Regulator

167A Section 54 (heading)

Repeal the heading, substitute:

54 Regulator may declare facility

168 Subsection 54(1)

Omit "Greenhouse and Energy Data Officer", substitute "Regulator".

169 Paragraph 54(1)(b)

Omit "his or her", substitute "the Regulator's".

170 Subsections 54(2), (3), (4) and (5)

Omit "Greenhouse and Energy Data Officer", substitute "Regulator".

171 Subsection 54(5)

Omit "he or she" (wherever occurring), substitute "the Regulator".

171A Section 55 (heading)

Schedule 1 General amendments

Part 1 Amendments commencing at the same time as section 3 of the Clean Energy

Act 2011 commences

20 Clean Energy (Consequential Amendments) Bill 2011 No. , 2011

Repeal the heading, substitute:

55 Regulator may declare corporation etc. has operational control

172 Subsection 55(1)

Omit "Greenhouse and Energy Data Officer", substitute "Regulator".

173 Paragraph 55(1)(b)

Omit "his or her", substitute "the Regulator's".

174 Paragraph 55(2)(d)

Omit "Greenhouse and Energy Data Officer", substitute "Regulator".

175 Subsection 55(3)

Omit "Greenhouse Energy and Data Officer", substitute "Regulator".

176 Subsections 55(4) and (5)

Omit "Greenhouse and Energy Data Officer", substitute "Regulator".

177 Subsection 55(5)

Omit "he or she" (wherever occurring), substitute "the Regulator".

178 Section 56

Omit "Greenhouse and Energy Data Officer", substitute "Regulator".

179 Subsections 57(1) and (2)

Omit "Greenhouse and Energy Data Officer", substitute "Regulator".

180 Subsections 58(1) and (2)

Omit "Greenhouse and Energy Data Officer", substitute "Regulator".

181 Subsections 71(1), (2) and (4)

Omit "Greenhouse and Energy Data Officer" (wherever occurring),

substitute "Regulator".

182 Subsection 73(1)

Omit "Greenhouse and Energy Data Officer", substitute "Regulator".

183 Subsection 73(2)

General amendments Schedule 1

Amendments commencing at the same time as section 3 of the Clean Energy Act 2011

commences Part 1

Clean Energy (Consequential Amendments) Bill 2011 No. , 2011 21

Omit "Greenhouse and Energy Data Officer" (wherever occurring),

substitute "Regulator".

184 Subsection 73(5)

Omit "Greenhouse and Energy Data Officer", substitute "Regulator".

185 Subsection 73A(1)

Omit "Greenhouse and Energy Data Officer", substitute "Regulator".

186 Subsection 73A(2)

Omit "Greenhouse and Energy Data Officer" (wherever occurring),

substitute "Regulator".

187 Subsection 73A(5)

Omit "Greenhouse and Energy Data Officer", substitute "Regulator".

188 Subsections 74(1) and (2)

Omit "Greenhouse and Energy Data Officer", substitute "Regulator".

189 Subsections 74A(1) and (2)

Omit "Greenhouse and Energy Data Officer", substitute "Regulator".

190 Subsections 75A(1), (2), (3), (4) and (7)

Omit "Greenhouse and Energy Data Officer", substitute "Regulator".

191 Subsection 75A(7)

Omit "Greenhouse and Energy Data Officer's", substitute

"Regulator's".

192 Subsection 75A(8)

Omit "Greenhouse and Energy Data Officer", substitute "Regulator".

Ozone Protection and Synthetic Greenhouse Gas

Management Act 1989

194 After section 67A

Insert:

Schedule 1 General amendments

Part 1 Amendments commencing at the same time as section 3 of the Clean Energy

Act 2011 commences

22 Clean Energy (Consequential Amendments) Bill 2011 No. , 2011

67B Disclosure of information to the Clean Energy Regulator

Scope

(1) This section applies to information obtained under this Act or the

regulations.

Disclosure

(2) The Minister may disclose the information to the Clean Energy

Regulator for the purposes of, or in connection with, the

performance of the functions, or the exercise of the powers, of the

Clean Energy Regulator.

Other powers of disclosure not limited

(3) This section does not, by implication, limit the Minister's powers

to disclose the information to a person other than the Clean Energy

Regulator.

Renewable Energy (Electricity) Act 2000

195 Subsection 5(1) (definition of Office of the Renewable

Energy Regulator)

Repeal the definition.

196 Subsection 5(1)

Insert:

official of the Regulator has the same meaning as in the Clean

Energy Regulator Act 2011.

197 Subsection 5(1) (definition of protected document)

Repeal the definition.

198 Subsection 5(1) (definition of protected information)

Repeal the definition.

199 Subsection 5(1) (definition of Regulator)

Omit "Renewable Energy Regulator (see section 142)", substitute

"Clean Energy Regulator".

General amendments Schedule 1

Amendments commencing at the same time as section 3 of the Clean Energy Act 2011

commences Part 1

Clean Energy (Consequential Amendments) Bill 2011 No. , 2011 23

200 Subsection 5(1) (definition of senior employee)

Omit "Office of the Renewable Energy Regulator", substitute

"Regulator".

201 Subsection 5(1) (definition of senior officer)

Repeal the definition, substitute:

senior officer of the Regulator means a person who:

(a) is a member of the staff of the Regulator; and

(b)

either:

(i) is an SES employee or acting SES employee; or

(ii) holds or performs the duties of an Executive Level 2

position or an equivalent position.

202 Subsection 5(1)

Insert:

staff of the Regulator has the same meaning as in the Clean

Energy Regulator Act 2011.

203 Subsection 30D(5)

Omit "he or she", substitute "the Regulator".

204 Subsection 107(1)

Omit "an officer or employee of the Office of the Renewable Energy

Regulator", substitute "a member of the staff of the Regulator".

205 Part 12 (heading)

Repeal the heading, substitute:

Part 12--Publication of information

206 Sections 126 to 133

Repeal the sections.

207 Part 14

Repeal the Part.

207A Subsection 156(1) (heading)

Schedule 1 General amendments

Part 1 Amendments commencing at the same time as section 3 of the Clean Energy

Act 2011 commences

24 Clean Energy (Consequential Amendments) Bill 2011 No. , 2011

Repeal the heading, substitute:

Delegation to senior officers of the Regulator

208 Subsection 156(1)

Omit "Office of the Renewable Energy Regulator", substitute

"Regulator".

209 Section 158

Repeal the section.

210 Paragraph 159(1)(b)

Omit "the Regulator", substitute "an official of the Regulator".

211 Subsection 159(2)

Omit "the Regulator" (first occurring), substitute "an official of the

Regulator".

212 Subsections 159(3) and (4)

Omit "the Regulator", substitute "an official of the Regulator".

Taxation Administration Act 1953

212A Subsection 355-65(7) in Schedule 1 (at the end of the

table)

Add:

the Clean Energy Regulator

is for the purpose of:

(a) a

taxation officer seeking

verification from the Regulator of

information provided to the

Commissioner under or for the

purposes of the Fuel Tax Act 2006;

(b) administering the Clean Energy Act

2011 or the associated provisions

(within the meaning of that Act).

General amendments Schedule 1

Amendments commencing at the same time as section 3 of the Clean Energy Act 2011

commences Part 1

Clean Energy (Consequential Amendments) Bill 2011 No. , 2011 25

Division 2--Transitional provisions

214 Transitional--acts of the Greenhouse and Energy Data

Officer to be attributed to the Clean Energy Regulator

(1)

This item applies to anything done by, or in relation to, the Greenhouse

and Energy Data Officer under the National Greenhouse and Energy

Reporting Act 2007, or under regulations under that Act, before the

commencement of this item.

(2) The

National Greenhouse and Energy Reporting Act 2007 and those

regulations have effect, after that commencement, as if the thing had

been done by, or in relation to, the Clean Energy Regulator.

215 Transitional--acts of the Renewable Energy Regulator to

be attributed to the Clean Energy Regulator

(1)

This item applies to anything done by, or in relation to, the Renewable

Energy Regulator under the Renewable Energy (Electricity) Act 2000,

or under regulations under that Act, before the commencement of this

item.

(2) The

Renewable Energy (Electricity) Act 2000 and those regulations

have effect, after that commencement, as if the thing had been done by,

or in relation to, the Clean Energy Regulator.

215A Transitional--acts of the Carbon Credits Administrator

to be attributed to the Clean Energy Regulator

(1)

This item applies to anything done by, or in relation to, the Carbon

Credits Administrator under:

(a)

the

Carbon Credits (Carbon Farming Initiative) Act 2011 or

regulations under that Act; or

(b)

the

Australian National Registry of Emissions Units Act 2011

or regulations under that Act;

before the commencement of this item.

(2) Those

Acts and regulations have effect, after that commencement, as if

the thing had been done by, or in relation to, the Clean Energy

Regulator.

216 Transitional--substitution of the Clean Energy Regulator

as a party in certain proceedings

Schedule 1 General amendments

Part 1 Amendments commencing at the same time as section 3 of the Clean Energy

Act 2011 commences

26 Clean Energy (Consequential Amendments) Bill 2011 No. , 2011

(1)

This item applies to proceedings to which the Greenhouse and Energy

Data Officer, the Renewable Energy Regulator or the Carbon Credits

Administrator was a party and that were pending in any court or tribunal

immediately before the commencement of this item.

(2)

The Clean Energy Regulator is substituted for the Greenhouse and

Energy Data Officer, the Renewable Energy Regulator or the Carbon

Credits Administrator, as the case requires, from that commencement,

as a party to those proceedings.

217 Transitional--transfer of records to the Clean Energy

Regulator

(1)

This item applies to any records or documents that:

(a) were in the possession of the Greenhouse and Energy Data

Officer, the Renewable Energy Regulator or the Carbon

Credits Administrator immediately before the

commencement of this item; and

(b) relate to the Greenhouse and Energy Data Officer, the

Renewable Energy Regulator, the Office of the Renewable

Energy Regulator or the Carbon Credits Administrator.

(2)

The records and documents are to be transferred to the Clean Energy

Regulator after the commencement of this item.

218 Transitional--transfer of Ombudsman investigations

If:

(a) before the commencement of this item, a complaint was

made to the Ombudsman, or the Ombudsman began an

investigation, under the Ombudsman Act 1976 in relation to

action taken by the Greenhouse and Energy Data Officer, the

Renewable Energy Regulator or the Carbon Credits

Administrator; and

(b) immediately before the commencement of this item, the

Ombudsman had not finally disposed of the matter in

accordance with the Ombudsman Act 1976;

the Ombudsman Act 1976 applies after the commencement of this item

as if that action had been taken by the Clean Energy Regulator.

219 Transitional--secrecy of information obtained under the

National Greenhouse and Energy Reporting Act 2007

General amendments Schedule 1

Amendments commencing at the same time as section 3 of the Clean Energy Act 2011

commences Part 1

Clean Energy (Consequential Amendments) Bill 2011 No. , 2011 27

Despite the amendments of section 23 of the National Greenhouse and

Energy Reporting Act 2007 made by this Part, that section continues to

apply, in relation to information obtained before the commencement of

this item, as if those amendments had not been made.

220 Transitional--secrecy of information obtained under the

Renewable Energy (Electricity) Act 2000

Despite the repeal of the following provisions of the Renewable Energy

(Electricity) Act 2000 by this Part:

(a) the definition of Office of the Renewable Energy Regulator

in subsection 5(1);

(b) the definition of protected document in subsection 5(1);

(d) the definition of Regulator in subsection 5(1);

(e)

subsection

126(1);

(f) sections 127 to 133;

those provisions continue to apply, in relation to:

(g) a protected document obtained or made by a person before

the commencement of this item; or

(h) protected information disclosed to, or obtained by, a person

before the commencement of this item;

as if:

(i) each reference in sections 129, 130, 131 and 132 of that Act

to the Regulator were a reference to the Clean Energy

Regulator; and

(j) the reference in section 129 to a person to whom Part 12 of

that Act applies were a reference to an official of the

Regulator; and

(k) those repeals had not happened.

220A Transitional--secrecy of information obtained under

the Carbon Credits (Carbon Farming Initiative) Act 2011

Despite:

(a) the repeal of the following provisions of the Carbon Credits

(Carbon Farming Initiative) Act 2011 by this Part:

(i) the definition of Administrator in section 5;

(ii) the definition of protected Administrator information

in section 5; and

Schedule 1 General amendments

Part 1 Amendments commencing at the same time as section 3 of the Clean Energy

Act 2011 commences

28 Clean Energy (Consequential Amendments) Bill 2011 No. , 2011

(b) the amendment of the following provisions of that Act by this

Part:

(i) the definition of entrusted public official in section 5;

(ii)

Part

27;

those provisions continue to apply, in relation to protected information

obtained by a person, in the person's capacity as an entrusted public

official, before the commencement of this item as if:

(d) the amendments had not been made; and

(e) each reference in sections 271, 274, 275, 276, 277, 281, 282

and 285 of that Act to the Administrator were a reference to

the Clean Energy Regulator; and

(f) each reference in sections 271, 272, 273, 275, 278, 279, 280

and 284 to an entrusted public official were a reference to an

official of the Regulator.

221 Transitional--documents signed by the Renewable

Energy Regulator

(1)

Despite the repeal of section 158 of the Renewable Energy (Electricity)

Act 2000 by this Part, that section continues to apply, in relation to a

person who held the office of the Renewable Energy Regulator at any

time before the commencement of this item, as if that repeal had not

happened.

(2)

Despite the amendments of section 159 of the Renewable Energy

(Electricity) Act 2000 made by this Part, that section continues to apply,

in relation to documents or certificates signed by the Renewable Energy

Regulator before the commencement of this item, as if those

amendments had not been made.

222 Transitional--references in instruments

(1)

For the purposes of this item, an eligible instrument is an instrument

that:

(a) was in force immediately before the commencement of this

item; and

(b) contains a reference to the Greenhouse and Energy Data

Officer, the Renewable Energy Regulator or the Carbon

Credits Administrator.

General amendments Schedule 1

Amendments commencing at the same time as section 3 of the Clean Energy Act 2011

commences Part 1

Clean Energy (Consequential Amendments) Bill 2011 No. , 2011 29

(2)

The Minister may, by legislative instrument, declare that a specified

eligible instrument has effect as if each reference in the instrument to

the Greenhouse and Energy Data Officer, the Renewable Energy

Regulator or the Carbon Credits Administrator, as the case may be,

were a reference to the Clean Energy Regulator.

223 Transitional--employees of the Clean Energy Regulator

Transferring employees

(1)

For the purposes of this item, a person is a transferring employee if:

(a) the person was an APS employee in:

(i) the Department; or

(ii) the Office of the Renewable Energy Regulator;

immediately before the transition time; and

(b) the person is covered by a determination that:

(i) is made under section 72 of the Public Service Act 1999;

and

(ii) causes the person, at the transition time, to become an

APS employee in the Clean Energy Regulator.

(2) If:

(a) a person is a transferring employee; and

(b) immediately before the transition time, a designated

agreement applied to the person's employment in the

Department or the Office of the Renewable Energy

Regulator, as the case may be;

then:

transition time) covers the Commonwealth and the

transferring employee in relation to the transferring

employee's employment in the Clean Energy Regulator; and

(d) the designated agreement has effect after the transition time,

in relation to the transferring employee's employment in the

Clean Energy Regulator, as if it had been made by the Chair

of the Clean Energy Regulator on behalf of the

Commonwealth; and

(e)

if:

(i) an enterprise agreement commences after the transition

time; and

Schedule 1 General amendments

Part 1 Amendments commencing at the same time as section 3 of the Clean Energy

Act 2011 commences

30 Clean Energy (Consequential Amendments) Bill 2011 No. , 2011

(ii) the enterprise agreement was made by the Chair of the

Clean Energy Regulator on behalf of the

Commonwealth; and

(iii) the enterprise agreement covers the Commonwealth and

the transferring employee in relation to the transferring

employee's employment in the Clean Energy Regulator;

paragraphs (c) and (d) cease to apply in relation to the

transferring employee when the enterprise agreement

commences.

(3) If:

(a) a person is a transferring employee; and

(b) immediately before the transition time, a determination under

subsection 24(1) of the Public Service Act 1999 applied to

the person's employment in:

(i) the Department; or

(ii) the Office of the Renewable Energy Regulator;

then:

transferring employee) has effect after the transition time, in

relation to the transferring employee's employment in the

Clean Energy Regulator, as if:

(i) the determination had been made by the Chair of the

Clean Energy Regulator; and

(ii) the determination were applicable to the person's

employment in the Clean Energy Regulator; and

(d) paragraph (c) does not prevent the variation or revocation of

the determination.

New employees

(4)

For the purposes of this item, a person is a new employee if:

(a) the person is an APS employee in the Clean Energy

Regulator; and

(b) the person is not a transferring employee.

(5) If:

(a) a designated agreement covers the Commonwealth because

of subitem (2); and

General amendments Schedule 1

Amendments commencing at the same time as section 3 of the Clean Energy Act 2011

commences Part 1

Clean Energy (Consequential Amendments) Bill 2011 No. , 2011 31

(b) after the transition time, a person becomes a new employee;

and

(c)

either:

(i) the designated agreement would have covered the

Commonwealth and the new employee in relation to the

new employee's employment in the Department if the

new employee had been an APS employee at the same

level in the Department immediately before the

transition time; or

(ii) the designated agreement would have covered the

Commonwealth and the new employee in relation to the

new employee's employment in the Office of the

Renewable Energy Regulator if the new employee had

been an APS employee at the same level in the Office of

the Renewable Energy Regulator immediately before

the transition time; and

(d) the Chair of the Clean Energy Regulator, by written notice

given to the new employee before or within 14 days after the

person becomes a new employee, determines that the

designated agreement is applicable to the new employee for

the purposes of this subitem from the time when the person

becomes a new employee;

then:

(e) the designated agreement (as in force immediately before the

transition time) covers the Commonwealth and the new

employee in relation to the new employee's employment in

the Clean Energy Regulator; and

(f) the designated agreement has effect after the transition time,

in relation to the new employee's employment in the Clean

Energy Regulator, as if it had been made by the Chair of the

Clean Energy Regulator on behalf of the Commonwealth;

and

(g)

if:

(i) an enterprise agreement commences after the transition

time; and

(ii) the enterprise agreement was made by the Chair of the

Clean Energy Regulator on behalf of the

Commonwealth; and

Schedule 1 General amendments

Part 1 Amendments commencing at the same time as section 3 of the Clean Energy

Act 2011 commences

32 Clean Energy (Consequential Amendments) Bill 2011 No. , 2011

(iii) the enterprise agreement covers the Commonwealth and

the new employee in relation to the new employee's

employment in the Clean Energy Regulator;

paragraphs (e) and (f) cease to apply in relation to the new

employee when the enterprise agreement commences.

Delegation

(6)

The Chair of the Clean Energy Regulator may, in writing, delegate the

power conferred by paragraph (5)(d) to:

(a) a member of the Clean Energy Regulator; or

(b) a person who is:

(i) a member of the staff of the Clean Energy Regulator;

and

(ii) an SES employee or acting SES employee; or

(i) a member of the staff of the Clean Energy Regulator;

and

(ii) an APS employee who holds or performs the duties of

an Executive Level 2 position or an equivalent position;

(d) a person who is:

(i) an APS employee in the Department; and

(ii) a person assisting the Clean Energy Regulator under

section 37 of the Clean Energy Regulator Act 2011.

Note: The

expressions

SES employee and acting SES employee are defined in the Acts

Interpretation Act 1901.

Legislative instrument

(7)

A determination made under paragraph (5)(d) is not a legislative

instrument.

Definitions

(8)

In this item:

commence, in relation to an enterprise agreement, means begin to

operate.

covers has the same meaning as in the Fair Work Act 2009.

designated agreement means:

General amendments Schedule 1

Amendments commencing at the same time as section 3 of the Clean Energy Act 2011

commences Part 1

Clean Energy (Consequential Amendments) Bill 2011 No. , 2011 33

(a)

the

Department of Climate Change Collective Agreement

2009-2011; or

(b)

the

Office of the Renewable Energy Regulator Enterprise

Agreement 2009-2011

; or

enterprise agreement has the same meaning as in the Fair Work Act

2009.

transition time means the commencement of this item.

224 Transitional--regulations relating to the transfer of APS

employees to the Clean Energy Regulator

The Governor-General may make regulations providing for matters of a

transitional nature in relation to the transfer of APS employees from:

(a) the Department; or

(b) the Office of the Renewable Energy Regulator;

to the Clean Energy Regulator.

225 Transitional--employees of the Climate Change

Authority

Transferring employees

(1)

For the purposes of this item, a person is a transferring employee if:

(a) the person was an APS employee in:

(i) the Department; or

(ii) the Office of the Renewable Energy Regulator;

immediately before the transition time; and

(b) the person is covered by a determination that:

(i) is made under section 72 of the Public Service Act 1999;

and

(ii) causes the person, at the transition time, to become an

APS employee in the Climate Change Authority.

(2) If:

(a) a person is a transferring employee; and

(b) immediately before the transition time, a designated

agreement applied to the person's employment in the

Department or the Office of the Renewable Energy

Regulator, as the case may be;

Schedule 1 General amendments

Part 1 Amendments commencing at the same time as section 3 of the Clean Energy

Act 2011 commences

34 Clean Energy (Consequential Amendments) Bill 2011 No. , 2011

then:

transition time) covers the Commonwealth and the

transferring employee in relation to the transferring

employee's employment in the Climate Change Authority;

and

(d) the designated agreement has effect after the transition time,

in relation to the transferring employee's employment in the

Climate Change Authority, as if it had been made by the

Chief Executive Officer of the Climate Change Authority on

behalf of the Commonwealth; and

(e)

if:

(i) an enterprise agreement commences after the transition

time; and

(ii) the enterprise agreement was made by the Chief

Executive Officer of the Climate Change Authority on

behalf of the Commonwealth; and

(iii) the enterprise agreement covers the Commonwealth and

the transferring employee in relation to the transferring

employee's employment in the Climate Change

Authority;

paragraphs (c) and (d) cease to apply in relation to the

transferring employee when the enterprise agreement

commences.

(3) If:

(a) a person is a transferring employee; and

(b) immediately before the transition time, a determination under

subsection 24(1) of the Public Service Act 1999 applied to

the person's employment in:

(i) the Department; or

(ii) the Office of the Renewable Energy Regulator;

then:

transferring employee) has effect after the transition time, in

relation to the transferring employee's employment in the

Climate Change Authority, as if:

(i) the determination had been made by the Chief

Executive Officer of the Climate Change Authority; and

General amendments Schedule 1

Amendments commencing at the same time as section 3 of the Clean Energy Act 2011

commences Part 1

Clean Energy (Consequential Amendments) Bill 2011 No. , 2011 35

(ii) the determination were applicable to the person's

employment in the Climate Change Authority; and

(d) paragraph (c) does not prevent the variation or revocation of

the determination.

New employees

(4)

For the purposes of this item, a person is a new employee if:

(a) the person is an APS employee in the Climate Change

Authority; and

(b) the person is not a transferring employee.

(5) If:

(a) a designated agreement covers the Commonwealth because

of subitem (2); and

(b) after the transition time, a person becomes a new employee;

and

(c)

either:

(i) the designated agreement would have covered the

Commonwealth and the new employee in relation to the

new employee's employment in the Department if the

new employee had been an APS employee at the same

level in the Department immediately before the

transition time; or

(ii) the designated agreement would have covered the

Commonwealth and the new employee in relation to the

new employee's employment in the Office of the

Renewable Energy Regulator if the new employee had

been an APS employee at the same level in the Office of

the Renewable Energy Regulator immediately before

the transition time; and

(d) the Chief Executive Officer of the Climate Change Authority,

by written notice given to the new employee before or within

14 days after the person becomes a new employee,

determines that the designated agreement is applicable to the

new employee for the purposes of this subitem from the time

when the person becomes a new employee;

then:

(e) the designated agreement (as in force immediately before the

transition time) covers the Commonwealth and the new

Schedule 1 General amendments

Part 1 Amendments commencing at the same time as section 3 of the Clean Energy

Act 2011 commences

36 Clean Energy (Consequential Amendments) Bill 2011 No. , 2011

employee in relation to the new employee's employment in

the Climate Change Authority; and

(f) the designated agreement has effect after the transition time,

in relation to the new employee's employment in the Climate

Change Authority, as if it had been made by the Chief

Executive Officer of the Climate Change Authority on behalf

of the Commonwealth; and

(g)

if:

(i) an enterprise agreement commences after the transition

time; and

(ii) the enterprise agreement was made by the Chief

Executive Officer of the Climate Change Authority on

behalf of the Commonwealth; and

(iii) the enterprise agreement covers the Commonwealth and

the new employee in relation to the new employee's

employment in the Climate Change Authority;

paragraphs (e) and (f) cease to apply in relation to the new

employee when the enterprise agreement commences.

Delegation

(6)

The Chief Executive Officer of the Climate Change Authority may, in

writing, delegate the power conferred by paragraph (5)(d) to:

(a) a person who is:

(i) a member of the staff of the Climate Change Authority;

and

(ii) an SES employee or acting SES employee; or

(b) a person who is:

(i) an SES employee, or acting SES employee, in the

Department; and

(ii) a person assisting the Climate Change Authority under

section 53 of the Climate Change Authority Act 2011; or

(i) is an APS employee in the Department; and

(ii) is a person assisting the Climate Change Authority

under section 53 of the Climate Change Authority Act

2011; and

(iii) holds or performs the duties of an Executive Level 2

position or an equivalent position.

General amendments Schedule 1

Amendments commencing at the same time as section 3 of the Clean Energy Act 2011

commences Part 1

Clean Energy (Consequential Amendments) Bill 2011 No. , 2011 37

Note: The

expressions

SES employee and acting SES employee are defined in the Acts

Interpretation Act 1901.

Legislative instrument

(7)

A determination made under paragraph (5)(d) is not a legislative

instrument.

Definitions

(8)

In this item:

commence, in relation to an enterprise agreement, means begin to

operate.

covers has the same meaning as in the Fair Work Act 2009.

designated agreement means:

(a)

the

Department of Climate Change Collective Agreement

2009-2011; or

(b)

the

Office of the Renewable Energy Regulator Enterprise

Agreement 2009-2011

; or

enterprise agreement has the same meaning as in the Fair Work Act

2009.

transition time means the start of 1 July 2012.

226 Transitional--regulations relating to the transfer of APS

employees to the Climate Change Authority

The Governor-General may make regulations providing for matters of a

transitional nature in relation to the transfer of APS employees from:

(a) the Department; or

(b) the Office of the Renewable Energy Regulator;

to the Climate Change Authority.

227 Separate agreements relating to employment

(1)

If either or both of the following conditions are satisfied:

(a) under either or both of subitems 223(2) and (5), a designated

agreement covers the Commonwealth and one or more

employees in relation to their employment in the Clean

Energy Regulator;

Schedule 1 General amendments

Part 1 Amendments commencing at the same time as section 3 of the Clean Energy

Act 2011 commences

38 Clean Energy (Consequential Amendments) Bill 2011 No. , 2011

(b) under either or both of subitems 225(2) and (5), a designated

agreement covers the Commonwealth and one or more

employees in relation to their employment in the Climate

Change Authority;

the Fair Work Act 2009 and the Fair Work (Transitional Provisions and

Consequential Amendments) Act 2009 have effect as if the following

were separate agreements:

mentioned in paragraph (a);

(d) the designated agreement, in so far as it has the coverage

mentioned in paragraph (b);

(e) the designated agreement, in so far as it has neither the

coverage mentioned in paragraph (a) nor the coverage

mentioned in paragraph (b).

Definitions

(2)

In this item:

covers has the same meaning as in the Fair Work Act 2009.

designated agreement means:

(a)

the

Department of Climate Change Collective Agreement

2009-2011; or

(b)

the

Office of the Renewable Energy Regulator Enterprise

Agreement 2009-2011

; or

enterprise agreement has the same meaning as in the Fair Work Act

2009.

228 Transitional--regulations

The Governor-General may make regulations in relation to transitional

matters arising out of the amendments made by this Part.

General amendments Schedule 1

Amendments commencing on 1 July 2012 Part 2

Clean Energy (Consequential Amendments) Bill 2011 No. , 2011 39

Part 2--Amendments commencing on 1 July 2012

Division 1--Amendments

Australian National Registry of Emissions Units Act 2011

229 Section 3

Omit:

�

Entries may be made in Registry accounts for:

(a)

Australian carbon credit units; and

(b)

Kyoto units; and

(c)

prescribed international units.

substitute:

�

Entries may be made in Registry accounts for:

(a)

carbon units; and

(b)

Australian carbon credit units; and

(c)

Kyoto units; and

(d)

prescribed international units.

230 Section 4

Insert:

carbon unit has the same meaning as in the Clean Energy Act

2011.

231 Section 4

Insert:

fixed charge year has the same meaning as in the Clean Energy

Act 2011.

Schedule 1 General amendments

Part 2 Amendments commencing on 1 July 2012

40 Clean Energy (Consequential Amendments) Bill 2011 No. , 2011

232 Section 4 (definition of hold)

Repeal the definition, substitute:

hold: a person holds a carbon unit or an Australian carbon credit

unit if the person is the registered holder of the unit.

233 Section 4

Insert:

Information Database has the same meaning as in the Clean

Energy Act 2011.

234 Section 4 (definition of issue)

Repeal the definition, substitute:

issue:

(a) in relation to a carbon unit--has the same meaning as in the

Clean Energy Act 2011; or

(b) in relation to an Australian carbon credit unit--has the same

meaning as in the Carbon Credits (Carbon Farming

Initiative) Act 2011.

235 Section 4 (before paragraph (a) of the definition of

registered holder)

Insert:

(aa) a carbon unit; or

236 Section 4

Insert:

vintage year has the same meaning as in the Clean Energy Act

2011.

237 Paragraph 9(4)(a)

Omit "Australian carbon credit units", substitute "carbon units,

Australian carbon credit units and prescribed international units".

238 Paragraph 11(5)(a)

After "any", insert "carbon units or".

General amendments Schedule 1

Amendments commencing on 1 July 2012 Part 2

Clean Energy (Consequential Amendments) Bill 2011 No. , 2011 41

239 After section 14

Insert:

14A Units in certain accounts cannot be surrendered

(1) The regulations may provide that, if there is an entry for a Kyoto

unit in a specified Commonwealth Registry account, the unit

cannot be surrendered under the Clean Energy Act 2011.

(2) Regulations made for the purposes of subsection (1) have effect

despite any other provision of the Clean Energy Act 2011.

240 After paragraph 15(2)(a)

Insert:

(aa) there are no entries for any carbon units in the account; and

241 After subsection 16(2)

Insert:

Cancellation or transfer of units

(2A) The regulations may provide that, if immediately before the

Regulator closes a Registry account under regulations made for the

purposes of subsection (1), there is an entry for a carbon unit in the

account, the unit is cancelled.

241A Subsection 16(3) (heading)

Repeal the heading.

242 Before subsection 17(1)

Insert:

Carbon units

(1A) An entry for a carbon unit in a Registry account may be made in

accordance with the Clean Energy Act 2011.

242A Before subsection 19(4)

Insert:

Schedule 1 General amendments

Part 2 Amendments commencing on 1 July 2012

42 Clean Energy (Consequential Amendments) Bill 2011 No. , 2011

(3B) The Regulator must not exercise the power conferred by

subsection (1) of this section in a manner contrary to section 103A

of the Clean Energy Act 2011.

242B Before subsection 22(5)

Insert:

(4B) The court must not make an order that is contrary to section 103A

of the Clean Energy Act 2011.

243 Before subparagraph 26(3)(a)(i)

Insert:

(ia) carbon units; or

244 Before paragraph 28A(1)(a)

Insert:

(aa) carbon units; or

245 After paragraph 28A(4)(a)

Insert:

(aa) anything in the Clean Energy Act 2011; or

246 Before paragraph 28B(1)(a)

Insert:

(aa) carbon units; or

247 After paragraph 28B(11)(a)

Insert:

(aa) anything in the Clean Energy Act 2011; or

248 Subsection 28B(11) (at the end of the note)

Add:

; and (e)

subsection 109(2) of the Clean Energy Act 2011.

249 After paragraph 28C(17)(a)

Insert:

(aa) anything in the Clean Energy Act 2011; or

250 Subparagraph 28D(5)(a)(ii)

General amendments Schedule 1

Amendments commencing on 1 July 2012 Part 2

Clean Energy (Consequential Amendments) Bill 2011 No. , 2011 43

After "issue any", insert "carbon units or".

251 Paragraph 28D(5)(b)

Repeal the paragraph, substitute:

(b) none of the following notices have effect:

(i) a notice to surrender eligible emissions units under

section 122 of the Clean Energy Act 2011;

(ii) a notice to relinquish carbon units under section 210 of

the Clean Energy Act 2011;

(iii) a notice to relinquish Australian carbon credit units

under section 175 of the Carbon Credits (Carbon

Farming Initiative) Act 2011.

252 After paragraph 28D(16)(a)

Insert:

(aa) anything in the Clean Energy Act 2011; or

253 Section 58

Repeal the section, substitute:

58 Simplified outline

The following is a simplified outline of this Part:

�

The Regulator must publish certain information about:

(a)

the holders of Registry accounts; and

(b)

carbon units; and

(c)

Kyoto units; and

(d)

prescribed international units.

254 After section 61

Insert:

Schedule 1 General amendments

Part 2 Amendments commencing on 1 July 2012

44 Clean Energy (Consequential Amendments) Bill 2011 No. , 2011

61A Information about number of voluntarily cancelled carbon

units

As soon as practicable after one or more carbon units held by a

person are cancelled under section 64A, the Regulator must publish

on the Regulator's website:

(a) the name of the person; and

(b) the total number of carbon units cancelled.

61B Information about number of voluntarily cancelled Australian

carbon credit units

As soon as practicable after one or more Australian carbon credit

units held by a person are cancelled under section 64B, the

Regulator must publish on the Regulator's website:

(a) the name of the person; and

(b) the total number of Australian carbon credit units cancelled.

255 At the end of Part 5

Add:

63A Number of voluntarily cancelled units to be entered in the

Information Database

Scope

(1) This section applies if there is an entry for a person in the

Information Database in relation to an eligible financial year

(within the meaning of the Clean Energy Act 2011).

Carbon units

(2) As soon as practicable after one or more carbon units held by the

person are cancelled under section 64A, the Regulator must enter

in the Information Database the total number of carbon units

cancelled.

Australian carbon credit units

(3) As soon as practicable after one or more Australian carbon credit

units held by the person are cancelled under section 64B, the

General amendments Schedule 1

Amendments commencing on 1 July 2012 Part 2

Clean Energy (Consequential Amendments) Bill 2011 No. , 2011 45

Regulator must enter in the Information Database the total number

of Australian carbon credit units cancelled.

Kyoto units

(4) As soon as practicable after one or more Kyoto units held by the

person are transferred under section 65 to a voluntary cancellation

account, the Regulator must enter in the Information Database the

total number of Kyoto units transferred.

Prescribed international units

(5) As soon as practicable after one or more prescribed international

units held by the person are cancelled under section 66, the

Regulator must enter in the Information Database the total number

of prescribed international units cancelled.

256 Section 64

Repeal the section, substitute:

64 Simplified outline

The following is a simplified outline of this Part:

�

If a person is the registered holder of one or more carbon

units, the person may request the Regulator to cancel any or

all of those units. However, this rule does not apply to a unit

that was issued for a fixed charge and has a vintage year that

is a fixed charge year.

�

If a person is the registered holder of one or more Australian

carbon credit units, the person may request the Regulator to

cancel any or all of those units.

�

If a person is the registered holder of one or more Kyoto units,

the person may request the Regulator to transfer to a voluntary

cancellation account any or all of those units.

�

If a person is the registered holder of one or more prescribed

international units, the person may request the Regulator to

cancel any or all of those units.

Schedule 1 General amendments

Part 2 Amendments commencing on 1 July 2012

46 Clean Energy (Consequential Amendments) Bill 2011 No. , 2011

64A Voluntary cancellation of carbon units

(1) If a person is the registered holder of one or more carbon units, the

person may, by electronic notice transmitted to the Regulator,

request the Regulator to cancel any or all of those units.

(2) A notice under subsection (1) must:

(a) specify the carbon unit or units that are to be cancelled; and

(b) specify the account number or account numbers of the

person's Registry account, or the person's Registry accounts,

in which there is an entry or entries for the carbon unit or

units that are to be cancelled.

(3) A person is not entitled to request the Regulator to cancel a carbon

unit that:

(a) was issued in accordance with section 100 of the Clean

Energy Act 2011; or

(b) has a vintage year that is a fixed charge year.

(4) If the Regulator receives a notice under subsection (1) in relation to

a carbon unit:

(a) the unit is cancelled; and

(b) the Regulator must remove the entry for the unit from the

person's Registry account in which there is an entry for the

unit.

(5) The Registry must set out a record of each notice under

subsection (1).

64B Voluntary cancellation of Australian carbon credit units

(1) If a person is the registered holder of one or more Australian

carbon credit units, the person may, by electronic notice

transmitted to the Regulator, request the Regulator to cancel any or

all of those units.

(2) A notice under subsection (1) must:

(a) specify the Australian carbon credit unit or units that are to

be cancelled; and

(b) specify the account number or account numbers of the

person's Registry account, or the person's Registry accounts,

General amendments Schedule 1

Amendments commencing on 1 July 2012 Part 2

Clean Energy (Consequential Amendments) Bill 2011 No. , 2011 47

in which there is an entry or entries for the Australian carbon

credit unit or units that are to be cancelled.

(3) If the Regulator receives a notice under subsection (1) in relation to

an Australian carbon credit unit:

(a) the unit is cancelled; and

(b) the Regulator must remove the entry for the unit from the

person's Registry account in which there is an entry for the

unit; and

(i) the Minister must, by written notice given to the

Regulator, direct the Regulator to transfer a Kyoto unit

from a Commonwealth holding account to a voluntary

cancellation account before the end of the true-up period

for the relevant commitment period; and

(ii) the Regulator must comply with a direction under

subparagraph (i).

(4) The Registry must set out a record of each notice under

subsection (1).

Australian Securities and Investments Commission Act 2001

256A At the end of subsection 127(2A)

Add:

; (f) the Climate Change Authority.

Carbon Credits (Carbon Farming Initiative) Act 2011

257 Section 163

Repeal the section.

258 Part 14

Repeal the Part.

258A Section 306

Repeal the section, substitute:

Schedule 1 General amendments

Part 2 Amendments commencing on 1 July 2012

48 Clean Energy (Consequential Amendments) Bill 2011 No. , 2011

306 Periodic reviews of operation of this Act etc.

(1) The Climate Change Authority must conduct reviews of the

operation of:

(a) this Act; and

(b) the regulations; and

Public consultation

(2) A review under subsection (1) must make provision for public

consultation.

Report

(3) The Climate Change Authority must:

(a) give the Minister a report of the review; and

(b) as soon as practicable after giving the report to the Minister,

publish the report on the Climate Change Authority's

website.

(4) The Minister must cause copies of a report under subsection (3) to

be tabled in each House of the Parliament within 15 sitting days of

that House after the review is completed.

First review

(5) The first review under subsection (1) must be completed before the

end of 31 December 2014.

Subsequent reviews

(6) Each subsequent review under subsection (1) must be completed

within 3 years after the deadline for completion of the previous

review.

(7) For the purposes of subsections (4), (5) and (6), a review is

completed when the report of the review is given to the Minister

under subsection (3).

Recommendations

(8) A report of a review under subsection (1) may set out

recommendations to the Commonwealth Government.

General amendments Schedule 1

Amendments commencing on 1 July 2012 Part 2

Clean Energy (Consequential Amendments) Bill 2011 No. , 2011 49

(9) In formulating a recommendation that the Commonwealth

Government should take particular action, the Climate Change

Authority must analyse the costs and benefits of that action.

(10) Subsection (9) does not prevent the Climate Change Authority

from taking other matters into account in formulating a

recommendation.

(11) If a report of a review under subsection (1) sets out one or more

recommendations to the Commonwealth Government, the report

must set out the Climate Change Authority's reasons for those

recommendations.

Government response to recommendations

(12) If a report of a review under subsection (1) sets out one or more

recommendations to the Commonwealth Government:

(a) as soon as practicable after receiving the report, the Minister

must cause to be prepared a statement setting out the

Commonwealth Government's response to each of the

recommendations; and

(b) within 6 months after receiving the report, the Minister must

cause copies of the statement to be tabled in each House of

the Parliament.

(13) The Commonwealth Government's response to the

recommendations may have regard to the views of the following:

(a) the Climate Change Authority;

(b) the Clean Energy Regulator;

Competition and Consumer Act 2010

258B Before paragraph 44AAF(3)(d)

Insert:

(cb) the Climate Change Authority;

258C Paragraph 44AAF(3)(d)

Omit "(c) or (ca)", substitute "(c), (ca) or (cb)".

258D After paragraph 155AAA(12)(la)

Schedule 1 General amendments

Part 2 Amendments commencing on 1 July 2012

50 Clean Energy (Consequential Amendments) Bill 2011 No. , 2011

Insert:

(lb) the Climate Change Authority;

Corporations Act 2001

259 Section 9

Insert:

carbon unit has the same meaning as in the Clean Energy Act

2011.

260 After paragraph 764A(1)(k)

Insert:

(kaa) a carbon unit;

Evidence Act 1995

260A Part 1 of the Dictionary (subparagraph (b)(vi) of the

definition of Commonwealth document)

After "section 46", insert "or 46A".

Financial Management and Accountability Regulations 1997

261 Part 1 of Schedule 1 (before table item 134)

Insert:

133A

Climate Change Authority, comprising:

(a) the Chair and the other members of the

Climate Change Authority; and

(b) the associate members of the Climate Change

Authority; and

Change Authority; and

(d) the staff mentioned in section 52 of the

Climate Change Authority Act 2011; and

(e) the persons whose services are made available

to the Climate Change Authority under

section 53 of that Act; and

(f) the consultants engaged under subsection 54(1)

of that Act.

Chief Executive

Officer

General amendments Schedule 1

Amendments commencing on 1 July 2012 Part 2

Clean Energy (Consequential Amendments) Bill 2011 No. , 2011 51

See Note B

National Greenhouse and Energy Reporting Act 2007

261A Section 3 (heading)

Repeal the heading, substitute:

3 Objects

262 Section 3

Before "The", insert "(1)".

263 Section 3

Before "object", insert "first".

264 Paragraph 3(a)

Repeal the paragraph.

265 At the end of section 3

Add:

(2) The second object of this Act is to underpin the Clean Energy Act

2011 by imposing various registration, reporting and

record-keeping requirements.

266 Section 4

Before "This Act", insert "(1)".

267 Section 4

After "This Act", insert "(except to the extent to which it underpins the

Clean Energy Act 2011)".

268 At the end of section 4

Add:

(2) To the extent to which this Act underpins the Clean Energy Act

2011, this Act relies on the same legislative powers that support the

Clean Energy Act 2011.

Schedule 1 General amendments

Part 2 Amendments commencing on 1 July 2012

52 Clean Energy (Consequential Amendments) Bill 2011 No. , 2011

269 Section 5

Before "This Act", insert "(1)".

270 Subparagraph 5(a)(i)

Repeal the subparagraph.

271 Paragraph 5(b)

Omit "this section", substitute "this subsection".

272 At the end of section 5

Add:

(2) This Act is intended to apply to the exclusion of a law of a State or

Territory, or a part of such a law:

(a) that provides for the reporting or disclosure of information

related to greenhouse gas emissions; and

(b) that the regulations provide is a law, or part of a law, to

which this subsection applies;

so far as the law, or part of the law, would otherwise apply in

relation to a person other than:

(d) an authority of a State or Territory.

273 After section 5

Insert:

5A Crown to be bound

(1) This Act binds the Crown in each of its capacities.

(2) This Act does not make the Crown liable to a pecuniary penalty or

to be prosecuted for an offence.

(3) The protection in subsection (2) does not apply to an authority of

the Crown.

274 Section 6

Repeal the section, substitute:

General amendments Schedule 1

Amendments commencing on 1 July 2012 Part 2

Clean Energy (Consequential Amendments) Bill 2011 No. , 2011 53

6 Extension to external Territories

This Act extends to every external Territory.

6A Extension to exclusive economic zone and continental shelf

This Act extends to a matter relating to the exercise of Australia's

sovereign rights in the exclusive economic zone or the continental

shelf.

6B Extension to Joint Petroleum Development Area

This Act extends to the Joint Petroleum Development Area.

6C Application to foreign ships

This Act does not apply to the extent that its application would be

inconsistent with the exercise of rights of foreign ships in:

(a) the territorial sea; or

(b) the exclusive economic zone; or

in accordance with the United Nations Convention on the Law of

the Sea.

275 Section 7

Insert:

activity includes:

(a) a condition; or

(b) a circumstance; or

relating to:

(d) solid waste; or

(e) carbon capture and storage; or

(f) other storage; or

(g)

stockpiling;

(h) any other matter or thing.

276 Section 7

Insert:

Schedule 1 General amendments

Part 2 Amendments commencing on 1 July 2012

54 Clean Energy (Consequential Amendments) Bill 2011 No. , 2011

approved by the Regulator means approved by the Regulator, in

writing, for the purposes of the provision in which the term occurs.

Note:

For variation and revocation, see subsection 33(3) of the Acts

Interpretation Act 1901.

277 Section 7

Insert:

carbon capture and storage means:

(a) the storage of a greenhouse gas substance in a part of a

geological formation; or

(b) the injection of a greenhouse gas substance into a part of a

geological formation for the purposes of such storage; or

transportation or piped conveyance of a greenhouse gas

substance, where the compression, processing, offloading,

transportation or piped conveyance is for the purposes of

such storage.

An expression used in this definition has the same meaning as in

the Offshore Petroleum and Greenhouse Gas Storage Act 2006.

For this purpose, assume that each reference in the definition of

greenhouse gas substance in section 7 of that Act to a prescribed

greenhouse gas were a reference to a greenhouse gas (within the

meaning of this Act).

278 Section 7 (definition of carbon dioxide equivalence)

Repeal the definition, substitute:

carbon dioxide equivalence:

(a) of an amount of greenhouse gas--means the amount of the

gas multiplied by a value specified in the regulations in

relation to that kind of greenhouse gas; or

(b) of an amount of potential greenhouse gas emissions

embodied in an amount of natural gas--has the meaning

given by section 7C.

280 Section 7

Insert:

designated generation facility means a facility that is:

General amendments Schedule 1

Amendments commencing on 1 July 2012 Part 2

Clean Energy (Consequential Amendments) Bill 2011 No. , 2011 55

(a) attributable to the industry sector mentioned in item 54 of

Schedule 2 to the National Greenhouse and Energy

Reporting Regulations 2008 (which deals with electricity

generation); and

(b) not a vertically integrated production process (within the

meaning of those regulations).

281 Section 7

Insert:

eligible financial year has the same meaning as in the Clean

Energy Act 2011.

282 Section 7 (definition of emission)

Repeal the definition, substitute:

emission of greenhouse gas means:

(a) a scope 1 emission of greenhouse gas; or

(b) a scope 2 emission of greenhouse gas.

283 Section 7

Insert:

emissions number has the same meaning as in the Clean Energy

Act 2011.

284 Section 7

Insert:

executive officer of a body corporate means:

(a) a director of the body corporate; or

(b) the chief executive officer (however described) of the body

corporate; or

(d) the secretary of the body corporate.

285 Section 7

Insert:

Schedule 1 General amendments

Part 2 Amendments commencing on 1 July 2012

56 Clean Energy (Consequential Amendments) Bill 2011 No. , 2011

financial control liability transfer certificate means a certificate

issued under section 87 of the Clean Energy Act 2011.

286 Section 7

Insert:

fixed charge year has the same meaning as in the Clean Energy

Act 2011.

287 Section 7

Insert:

foreign country has the same meaning as in the Clean Energy Act

2011.

288 Section 7

Insert:

foreign person means any of the following:

(a) an individual who is not ordinarily resident in Australia;

(b) a body corporate that:

(i) is incorporated outside Australia; or

(ii) is an authority of a foreign country;

(i) is incorporated outside Australia; or

(ii) is an authority of a foreign country;

(d) a body politic of a foreign country;

(e) a trust, where the trustee, or a majority of the trustees, are

covered by any or all of the above paragraphs.

289 Section 7 (definition of greenhouse and energy audit)

Omit "74A", substitute "74C".

290 Section 7 (definition of greenhouse gas)

Repeal the definition, substitute:

greenhouse gas has the meaning given by section 7A.

291 Section 7 (paragraph (b) of the definition of greenhouse

gas project)

General amendments Schedule 1

Amendments commencing on 1 July 2012 Part 2

Clean Energy (Consequential Amendments) Bill 2011 No. , 2011 57

Omit "regulations;", substitute "regulations.".

292 Section 7 (definition of greenhouse gas project)

Omit all the words from and including "but" to the end of the definition.

293 Section 7 (definition of group)

Omit "subsection 8(1)", substitute "section 8".

294 Section 7 (definition of innocent passage)

Repeal the definition.

295 Section 7

Insert:

interim emissions number has the same meaning as in the Clean

Energy Act 2011.

296 Section 7

Insert:

Joint Petroleum Development Area has the same meaning as in

the Petroleum (Timor Sea Treaty) Act 2003.

297 Section 7 (definition of joint venture)

Repeal the definition, substitute:

joint venture means an unincorporated enterprise carried on by 2

or more persons in common otherwise than in partnership.

298 Section 7

Insert:

liable entity has the same meaning as in the Clean Energy Act

2011.

299 Section 7

Insert:

local governing body means a local governing body established by

or under a law of a State or Territory.

Schedule 1 General amendments

Part 2 Amendments commencing on 1 July 2012

58 Clean Energy (Consequential Amendments) Bill 2011 No. , 2011

300 Section 7 (definition of member)

Before "has", insert ", in relation to a group,".

301 Section 7

Insert:

natural gas has the meaning given by the regulations.

303 Section 7

Insert:

non-group entity means a person who is not a member of a

controlling corporation's group.

304 Section 7 (definition of oil or gas extraction activity)

Repeal the definition.

305 Section 7

Insert:

operation, in relation to a facility, includes the subsistence of the

facility.

307 Section 7 (definition of operational control)

Omit "11", substitute "11, 11A, 11B or 11C".

308 Section 7

Insert:

person means any of the following:

(a)

individual;

(b) a body corporate;

(c)

trust;

(d) a corporation sole;

(e) a body politic;

(f) a local governing body.

309 Section 7

Insert:

General amendments Schedule 1

Amendments commencing on 1 July 2012 Part 2

Clean Energy (Consequential Amendments) Bill 2011 No. , 2011 59

potential greenhouse gas emissions embodied in an amount of

natural gas has the meaning given by section 7B.

310 Section 7

Insert:

provisional emissions number has the same meaning as in the

Clean Energy Act 2011.

312 Section 7

Insert:

Register means the National Greenhouse and Energy Register

maintained under section 16.

313 Section 7 (definition of registered corporation)

Omit "Division 3 of Part 2", substitute "this Act".

314 Section 7

Insert:

registered person means a person registered under this Act.

315 Section 7

Insert:

scope 1 emission of greenhouse gas has the meaning given by

section 10.

316 Section 7

Insert:

scope 2 emission of greenhouse gas has the meaning given by

section 10.

319 Section 7

Insert:

trust means a person in the capacity of trustee or, as the case

requires, a trust estate.

320 Section 7

Schedule 1 General amendments

Part 2 Amendments commencing on 1 July 2012

60 Clean Energy (Consequential Amendments) Bill 2011 No. , 2011

Insert:

trustee has the same meaning as in the Income Tax Assessment Act

1997.

321 Section 7

Insert:

trust estate has the same meaning as in the Income Tax Assessment

Act 1997.

322 Section 7

Insert:

United Nations Convention on the Law of the Sea means the

United Nations Convention on the Law of the Sea, done at

Montego Bay on 10 December 1982.

Note:

The text of the Convention is set out in Australian Treaty Series 1994

No. 31 ([1994] ATS 31). In 2011, the text of an international

agreement in the Australian Treaty Series was accessible through the

Australian Treaties Library on the AustLII website

(www.austlii.edu.au).

323 After section 7

Insert:

7A Greenhouse gas

(1) For the purposes of this Act and the Clean Energy Act 2011, each

of the following is a greenhouse gas:

(a)

carbon

dioxide;

(b)

methane;

(c)

nitrous

oxide;

(d)

sulfur

hexafluoride;

(e) a hydrofluorocarbon of a kind specified in the table in

subsection (2);

(f) a perfluorocarbon of a kind specified in the table in

subsection (3);

(g) a prescribed gas.

General amendments Schedule 1

Amendments commencing on 1 July 2012 Part 2

Clean Energy (Consequential Amendments) Bill 2011 No. , 2011 61

Table 1--Hydrofluorocarbons

(2) Table 1 is as follows:

Hydrofluorocarbons

Item Hydrofluorocarbon

Chemical

formula

1 HFC-23

CHF

2 HFC-32

3 HFC-41

4 HFC-43-10mee

5 HFC-125

6 HFC-134

(CHF

CHF

)

7 HFC-134a

(CH

FCF

)

8 HFC-143

(CHF

9 HFC-143a

(CF

)

10 HFC-152a

(CH

CHF

)

11 HFC-227ea

12 HFC-236fa

13 HFC-245ca

Table 2--Perfluorocarbons

(3) Table 2 is as follows:

Perfluorocarbons

Item Perfluorocarbon

Chemical

formula

1 Perfluoromethane

(tetrafluoromethane)

2 Perfluoroethane

(hexafluoroethane)

3 Perfluoropropane

4 Perfluorobutane

5 Perfluorocyclobutane

c-C

6 Perfluoropentane

7 Perfluorohexane

Schedule 1 General amendments

Part 2 Amendments commencing on 1 July 2012

62 Clean Energy (Consequential Amendments) Bill 2011 No. , 2011

7B Potential greenhouse gas emissions embodied in an amount of

natural gas

(1) For the purposes of this Act and the Clean Energy Act 2011, the

potential greenhouse gas emissions embodied in an amount of

natural gas is:

(a) the amount of the greenhouse gas; or

(b) the amounts of the greenhouse gases;

that would be released into the atmosphere as a result of the

combustion of the amount of the natural gas.

Default method

(2) The Minister may determine that the amount of greenhouse gas

that would be released into the atmosphere as a result of the

combustion of an amount of natural gas is taken, for the purposes

of:

(a) this Act (other than subsections (3) and (4) of this section);

and

(b)

the

Clean Energy Act 2011;

to be the amount of the natural gas multiplied by a value specified

in the determination.

Prescribed alternative method

(3)

However,

if:

(a) a report relating to an eligible financial year was given by a

person under section 22A; and

(b) the report was given before the end of 4 months after the end

of the eligible financial year; and

embodied in an amount of natural gas is relevant to working

out a provisional emissions number of the person for the

eligible financial year; and

(d) the report contained a statement to the effect that the person

has made a choice to use the prescribed alternative method to

ascertain the potential greenhouse gas emissions; and

(e) the prescribed alternative method was complied with in

ascertaining the potential greenhouse gas emissions;

then, for the purposes of this Act and the Clean Energy Act 2011:

General amendments Schedule 1

Amendments commencing on 1 July 2012 Part 2

Clean Energy (Consequential Amendments) Bill 2011 No. , 2011 63

(f) the potential greenhouse gas emissions are to be ascertained

in accordance with the prescribed alternative method; and

(g) a determination under subsection (2) does not apply in

ascertaining the potential greenhouse gas emissions.

(4) For the purposes of this section, the prescribed alternative method

is a method that:

(a) is for ascertaining the potential greenhouse gas emissions

embodied in an amount of natural gas; and

(b) is specified in a determination made by the Minister; and

Combustion

(5) The Minister may determine that, for the purposes of this section, it

is to be assumed that the combustion of an amount of natural gas

takes place in the circumstances specified in the determination.

Determination

(6) A determination made under subsection (2), (4) or (5) is a

legislative instrument.

7C Carbon dioxide equivalence of potential greenhouse gas

emissions embodied in an amount of natural gas

Scope

(1) This section applies if the potential greenhouse gas emissions

embodied in an amount of natural gas consist of:

(a) an amount of a greenhouse gas; or

(b) amounts of one or more greenhouse gases.

Carbon dioxide equivalence

(2) For the purposes of this Act and the Clean Energy Act 2011, the

carbon dioxide equivalence of the potential greenhouse gas

emissions is the total of the carbon dioxide equivalence of that

amount of greenhouse gas or those amounts of greenhouse gases.

324 Subsection 8(1)

Schedule 1 General amendments

Part 2 Amendments commencing on 1 July 2012

64 Clean Energy (Consequential Amendments) Bill 2011 No. , 2011

Omit "A controlling", substitute "For the purposes of this Act and the

Clean Energy Act 2011, a controlling".

325 Paragraph 8(1)(b)

Omit "(if any);", substitute "(if any).".

326 Paragraphs 8(1)(c) and (d)

Repeal the paragraphs.

327 Subsections 8(4), (5) and (6)

Repeal the subsections, substitute:

(4) To avoid doubt, a controlling corporation's group may consist of

the controlling corporation alone.

328 Subsection 9(1)

Omit "A facility is", substitute "For the purposes of this Act and the

Clean Energy Act 2011, a facility is".

329 Subsection 9(1)

Omit "the production of" (first occurring).

330 Paragraph 9(1)(b)

Omit "54;", substitute "54 or 54A.".

331 Subsection 9(1)

Omit all the words from and including "but" to the end of the

subsection.

332 Subsection 9(3)

Repeal the subsection.

333 Subsection 10(1)

After "References", insert "in this Act or the Clean Energy Act 2011".

334 Paragraph 10(1)(a)

Repeal the paragraph, substitute:

(a)

scope 1 emission of greenhouse gas;

(aa)

scope 2 emission of greenhouse gas;

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Clean Energy (Consequential Amendments) Bill 2011 No. , 2011 65

336 Subsection 10(2)

Omit "paragraph (1)(a) may specify a meaning of emissions", substitute

"paragraph (1)(aa) may specify a meaning of scope 2 emission".

337 Subsection 10(3)

Omit "emissions," (wherever occurring), substitute "scope 1 emissions,

scope 2 emissions,".

338 Subsection 10(3)

After "this Act", insert "and the Clean Energy Act 2011".

339 Paragraph 10(3)(a)

Repeal the paragraph, substitute:

(a) in the case of scope 1 emissions--different methods or

criteria for emissions from different sources; and

339A Section 11 (heading)

Repeal the heading, substitute:

11 Operational control--basic rule

340 Subsection 11(1)

Omit "A controlling corporation or another member of the corporation's

group", substitute "For the purposes of this Act and the Clean Energy

Act 2011, a person".

341 Paragraph 11(1)(a)

Omit "it", substitute "the person".

342 Paragraph 11(1)(b)

Omit "corporation or member", substitute "person".

343 At the end of paragraph 11(1)(b)

Add "or 55A".

344 Subsection 11(2)

After "apply", insert "in relation to a facility".

345 At the end of subsection 11(2)

Schedule 1 General amendments

Part 2 Amendments commencing on 1 July 2012

66 Clean Energy (Consequential Amendments) Bill 2011 No. , 2011

Add "in relation to the facility".

346 Subsection 11(3)

After "this Act", insert "and the Clean Energy Act 2011".

347 Subsection 11(3)

Omit "such corporation or member", substitute "person".

348 Subsection 11(4)

Repeal the subsection, substitute:

(4) This section has effect subject to sections 11A, 11B and 11C.

349 At the end of Part 1

Add:

11A Operational control--person with greatest authority

Scope

(1) This section applies if the following conditions are satisfied in

relation to a period that is included in, or consists of, an eligible

financial year:

(a) 2 or more persons could satisfy paragraph 11(1)(a) in relation

to a facility throughout the period;

(b) a particular person has the greatest authority to introduce and

implement the policies mentioned in subparagraphs

11(1)(a)(i) and (iii) in relation to the facility throughout the

period;

the facility at any time during the period.

Operational control

(2) The person mentioned in paragraph (1)(b) is taken, for the

purposes of this Act and the Clean Energy Act 2011, to have

operational control over the facility throughout the period.

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Clean Energy (Consequential Amendments) Bill 2011 No. , 2011 67

11B Operational control--nominated person

Scope

(1) This section applies if the following conditions are satisfied in

relation to a period that is included in, or consists of, an eligible

financial year:

(a) 2 or more persons could satisfy paragraph 11(1)(a) in relation

to a facility throughout the period;

(b) no particular person has the greatest authority to introduce

and implement the policies mentioned in subparagraphs

11(1)(a)(i) and (iii) in relation to the facility throughout the

period;

the facility at any time during the period.

Nomination

(2) Those persons must, before the end of 31 August next following

the eligible financial year, jointly nominate one of them to be the

nominated person in relation to the facility for the period.

Civil penalty:

1,000 penalty units.

(3) A nomination must:

(a) be in writing; and

(b) be in a form approved by the Regulator; and

regulations.

(4)

If:

(a) any of those persons is a foreign person; and

(b) any of those persons is not a foreign person;

a foreign person cannot be nominated.

Operational control--nomination made

(5) If a nomination is made and the facility is a facility of a joint

venture, the nominated person is taken, for the purposes of this

Act, to have operational control over the facility throughout the

period.

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68 Clean Energy (Consequential Amendments) Bill 2011 No. , 2011

(6) If a nomination is made and the facility is not a facility of a joint

venture, the nominated person is taken, for the purposes of this Act

and the Clean Energy Act 2011, to have operational control over

the facility throughout the period.

Operational control--nomination not made

(7) If no nomination is made and the facility is a facility of a joint

venture, each of the persons mentioned in paragraph (1)(a) is taken,

for the purposes of this Act, to have operational control over the

facility throughout the period.

(8) If no nomination is made and the facility is not a facility of a joint

venture:

(a) each of the persons mentioned in paragraph (1)(a) is taken,

for the purposes of this Act and the Clean Energy Act 2011,

to have operational control over the facility throughout the

period; and

(b) if there is a provisional emissions number of:

(i) such a person; or

(ii) if such a person is a member of a controlling

corporation's group--the controlling corporation;

for the eligible financial year in relation to greenhouse gases

emitted from the operation of the facility during the period--

for the purposes of this Act and the Clean Energy Act 2011,

that provisional emissions number is taken to be the number

worked out using the formula set out in subsection (9).

(9) The formula is:

Unadjusted provisional emissions number

Total number of persons mentioned in

paragraph (1)(a)

where:

unadjusted provisional emissions number means the number that,

apart from paragraph (8)(b), would be the provisional emissions

number of the person or the controlling corporation, as the case

may be, for the eligible financial year in relation to greenhouse

gases emitted from the operation of the facility during the period.

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Clean Energy (Consequential Amendments) Bill 2011 No. , 2011 69

Exception

(10) A person is not required to comply with subsection (2) if the

question of who has operational control of the facility is not

relevant (whether directly or indirectly) to a requirement under:

(a) this Act; or

(b)

the

Clean Energy Act 2011.

11C Operational control--trust with multiple trustees

Scope

(1) This section applies if the following conditions are satisfied in

relation to a period that is included in, or consists of, an eligible

financial year:

(a) because of section 11, 11A or 11B, a trust has operational

control over a facility throughout the period;

(b) throughout the period, there are 2 or more trustees of the

trust;

the facility at any time during the period.

Nomination

(2) Those trustees must, before the end of 31 August next following

the eligible financial year, jointly nominate one of them to be the

nominated trustee in relation to the facility for the period.

Civil penalty:

1,000 penalty units.

(3) A nomination must:

(a) be in writing; and

(b) be in a form approved by the Regulator; and

regulations.

(4)

If:

(a) any of those trustees is a foreign person; and

(b) any of those trustees is not a foreign person;

a foreign person cannot be nominated.

Schedule 1 General amendments

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70 Clean Energy (Consequential Amendments) Bill 2011 No. , 2011

Operational control

(5) If a nomination is made, the nominated trustee is taken, for the

purposes of this Act and the Clean Energy Act 2011, to have

operational control over the facility throughout the period.

(6) If no nomination is made:

(a) each of those trustees is taken, for the purposes of this Act

and the Clean Energy Act 2011, to have operational control

over the facility throughout the period; and

(b) if there is a provisional emissions number of such a trustee

for the eligible financial year in relation to greenhouse gases

emitted from the operation of the facility during the period--

for the purposes of this Act and the Clean Energy Act 2011,

that provisional emissions number is taken to be the number

worked out using the formula set out in subsection (7).

(7) The formula is:

Unadjusted provisional emissions number

Total number of trustees mentioned in

paragraph (1)(a)

where:

unadjusted provisional emissions number means the number that,

apart from paragraph (6)(b), would be the provisional emissions

number of the trustee for the eligible financial year in relation to

greenhouse gases emitted from the operation of the facility during

the period.

Exception

(8) A trustee is not required to comply with subsection (2) if the

question of who has operational control of the facility is not

relevant (whether directly or indirectly) to a requirement under:

(a) this Act; or

(b)

the

Clean Energy Act 2011.

350 Before section 12

Insert:

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Amendments commencing on 1 July 2012 Part 2

Clean Energy (Consequential Amendments) Bill 2011 No. , 2011 71

Subdivision A--Application by a controlling corporation

351 After subsection 13(1)

Insert:

(1A) Subsection (1) does not apply in relation to:

(a) greenhouse gas emissions; or

(b) energy production; or

(c)

energy

consumption;

unless the Minister has, under subsection 10(3), determined:

(d) methods by which the amounts of the emissions, production

or consumption, as the case may be, are to be measured; or

(e) criteria for methods by which the amounts of emissions,

production or consumption, as the case may be, are to be

measured.

351A At the end of section 13

Add:

Financial control liability transfer certificate

(4) For the purposes of this section, if a person was the holder of a

financial control liability transfer certificate in relation to a facility

on a particular day in an eligible financial year, the facility is taken

not to have been under the operational control of a member of a

controlling corporation's group on that day.

352 At the end of Division 1 of Part 2

Add:

Subdivision B--Application by a liable entity

15A Application by a liable entity

(1) If a person is or was a liable entity for an eligible financial year

(the current eligible financial year), the person must apply, in

accordance with this section, to be registered under this Act.

Civil penalty:

(a) for an individual--2,000 penalty units; or

(b) otherwise--10,000 penalty units.

Schedule 1 General amendments

Part 2 Amendments commencing on 1 July 2012

72 Clean Energy (Consequential Amendments) Bill 2011 No. , 2011

Note 1:

Under Division 137 of the Criminal Code, it may be an offence to

provide false or misleading information or documents to the Regulator

in purported compliance with this Act.

Note 2:

Under section 30, a person may be liable for an additional civil

penalty for each day that the person fails to apply in accordance with

subsection (1) of this section.

(2) However, a person is not required to make an application under

subsection (1) if the person is registered under this Act at the end

of the current eligible financial year.

(3) An application under subsection (1) must be made by 31 August in

the eligible financial year next following the current eligible

financial year.

(4) An application under subsection (1) must:

(a) be made to the Regulator; and

(b) be in a form approved by the Regulator; and

purposes of this paragraph.

15AA Application by liable entity with interim emissions number

etc.--fixed charge year

(1) If, as at the start of 1 April in a fixed charge year (the current fixed

charge year):

(a)

either:

(i) a person is a liable entity for the current fixed charge

year; or

(ii) it may reasonably be expected that the person will be a

liable entity for the current fixed charge year; and

(b)

either:

(i) the person has an interim emissions number for the

current fixed charge year; or

(ii) it may reasonably be expected that the person will have

an interim emissions number for the current fixed

charge year;

the person must apply, in accordance with this section, to be

registered under this Act.

Civil penalty:

(a) for an individual--2,000 penalty units; or

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Clean Energy (Consequential Amendments) Bill 2011 No. , 2011 73

(b) otherwise--10,000 penalty units.

Note 1:

Under Division 137 of the Criminal Code, it may be an offence to

provide false or misleading information or documents to the Regulator

in purported compliance with this Act.

Note 2:

Under section 30, a person may be liable for an additional civil

penalty for each day that the person fails to apply in accordance with

subsection (1) of this section.

(2) However, a person is not required to make an application under

subsection (1) if the person is registered under this Act at the start

of 1 April in the current fixed charge year.

(3) An application under subsection (1) must be made by 1 May in the

current fixed charge year.

(4) An application under subsection (1) must:

(a) be made to the Regulator; and

(b) be in a form approved by the Regulator; and

purposes of this paragraph.

353 Division 2 of Part 2

Repeal the Division, substitute:

Division 2--National Greenhouse and Energy Register

16 National Greenhouse and Energy Register

(1) The Regulator is to maintain a register, to be known as the

National Greenhouse and Energy Register, that sets out:

(a) the name of each person registered under this Act; and

(b) any other matters, specified in the regulations, that relate to

the following:

(i) information included in the application for registration;

(ii) whether the person has complied with provisions of this

Act;

(iii) information included in a report given by the person

under this Act;

(iv) information that is published under section 24;

(v) the results of a greenhouse and energy audit carried out

in relation to the person.

Schedule 1 General amendments

Part 2 Amendments commencing on 1 July 2012

74 Clean Energy (Consequential Amendments) Bill 2011 No. , 2011

(2) The National Greenhouse and Energy Register may be maintained

by electronic means.

(3) The National Greenhouse and Energy Register may be made

available for inspection in any way the Regulator thinks

appropriate.

(4) The Regulator must ensure that the National Greenhouse and

Energy Register is up-to-date.

(5) The National Greenhouse and Energy Register is not a legislative

instrument.

(6) Before the end of 28 February next following each financial year,

the Regulator must publish on its website the name of each person

registered under this Act at any time during the financial year.

(7) Subsection (6) does not limit subsection (3).

354 Division 3 of Part 2 (heading)

Repeal the heading, substitute:

Division 3--Registration of controlling corporations

355 Section 18

Repeal the section.

356 At the end of Part 2

Add:

Division 4--Registration of other persons

18A Registration of other persons

(1) The Regulator must register a person under this Act if the person

has applied for registration under section 15A or 15AA.

(2) The Regulator must notify the person, in writing, of the

Regulator's decision on the application.

(3) The person is registered under this Act when the Regulator has

entered the name of the person on the Register.

General amendments Schedule 1

Amendments commencing on 1 July 2012 Part 2

Clean Energy (Consequential Amendments) Bill 2011 No. , 2011 75

Division 5--Deregistration

18B Deregistration

Deregistration on application

(1) A registered person may apply to the Regulator to be deregistered.

(2) An application must:

(a) be in writing; and

(b) be in a form approved by the Regulator; and

(3) The Regulator must remove the person's name from the Register if

the Regulator is satisfied that:

(a) in a case where the person is the controlling corporation of a

group--the group is not likely to meet any of the thresholds

under section 13 for:

(i) the financial year in which the application is made; and

(ii) the next 2 financial years; and

(b)

the

person:

(i) is not a liable entity for the financial year in which the

application is made; and

(ii) is not likely to be a liable entity for any of the next 2

financial years; and

(d) the person has complied with the person's obligations under

this Act.

(4) The Regulator must notify the person, in writing, of the

Regulator's decision on the application.

Deregistration on the Regulator's own initiative

(5) The Regulator may remove a person's name from the Register if

the Regulator is satisfied that the person has ceased to exist.

When registration ceases

(6) A person ceases to be registered under this Act when the Regulator

has removed the person's name from the Register.

Schedule 1 General amendments

Part 2 Amendments commencing on 1 July 2012

76 Clean Energy (Consequential Amendments) Bill 2011 No. , 2011

357 Part 3 (heading)

Repeal the heading, substitute:

Part 3--Reporting obligations of registered

corporations etc.

358 Subsection 19(1)

Omit "registered corporation", substitute "corporation registered under

Division 3 of Part 2".

359 At the end of subsection 19(1)

Add:

Note 4:

Reports under this section and section 22A may be set out in the same

document--see subsection 22A(4).

360 After subsection 19(1)

Insert:

(1A) Subsection (1) does not apply to:

(a) greenhouse gas emissions; or

(b) energy production; or

(c)

energy

consumption;

unless the Minister has, under subsection 10(3), determined:

(d) methods by which the amounts of the emissions, production

or consumption, as the case may be, are to be measured; or

(e) criteria for methods by which the amounts of emissions,

production or consumption, as the case may be, are to be

measured.

Note:

Paragraph (6)(b) requires that a report under subsection (1) must be

based on methods, or methods which meet criteria, determined under

subsection 10(3).

361 Subsections 19(4) and (5)

Repeal the subsections, substitute:

(4) If a person other than the corporation is the holder of a financial

control liability transfer certificate in relation to a facility

throughout the whole or a part of an eligible financial year, a report

under subsection (1) need not relate to the:

General amendments Schedule 1

Amendments commencing on 1 July 2012 Part 2

Clean Energy (Consequential Amendments) Bill 2011 No. , 2011 77

(a) greenhouse gas emissions; and

(b) energy production; and

(c)

energy

consumption;

from the operation of the facility during the whole, or the part, as

the case may be, of the eligible financial year.

362 Paragraph 19(6)(c)

Omit "include any", substitute "set out the".

363 At the end of section 19

Add:

(10) This section does not apply to a facility that was under the

operational control of a member of the corporation's group during

the whole or a part of a financial year if the member is required to

provide a report under section 22X about the facility in respect of

the year.

364 Paragraphs 22(1)(a) and (b)

After "this Act", insert "(other than Part 3A or 3D)".

365 Paragraphs 22(2)(a) and (b)

After "this Act", insert "(other than Part 3A or 3D)".

366 Subsection 22(3)

Omit "7 years", substitute "5 years".

367 After Part 3

Insert:

Part 3A--Reporting obligations of liable entities

etc.

22A Report to be given to Regulator--general

(1) If a person was a liable entity for an eligible financial year, the

person must, in accordance with this section, provide a report to

the Regulator relating to:

Schedule 1 General amendments

Part 2 Amendments commencing on 1 July 2012

78 Clean Energy (Consequential Amendments) Bill 2011 No. , 2011

(a) the calculation of the person's provisional emissions numbers

for the eligible financial year; and

(b) if a provisional emissions number of the person for the

eligible financial year is attributable to scope 1 emissions of

greenhouse gas--those emissions; and

eligible financial year is attributable to potential greenhouse

gas emissions embodied in an amount of natural gas--those

potential greenhouse gas emissions; and

(d) the calculation of the person's emissions number for the

eligible financial year.

Civil penalty:

(a) for an individual--2,000 penalty units; or

(b) otherwise--10,000 penalty units.

Note 1:

Under Division 137 of the Criminal Code, it may be an offence to

provide false or misleading information or documents to the Regulator

in purported compliance with this Act.

Note 2:

Under section 30, a person may be liable for an additional civil

penalty for each day after the end of the period mentioned in

paragraph (2)(c) of this section for which the person fails to provide a

report in accordance with this section.

(2) A report under this section must:

(a) be given in a manner and form approved by the Regulator;

and

(b) set out the information specified by the regulations for the

purposes of this paragraph; and

end of the eligible financial year.

(3) Regulations made for the purposes of paragraph (2)(b) may specify

different requirements for different circumstances.

(4) Reports under this section and section 19 may be set out in the

same document.

Note:

Reports under this section and section 22E may be set out in the same

document--see subsection 22E(7).

22AA Report to be given to Regulator--fixed charge year

(1)

If:

General amendments Schedule 1

Amendments commencing on 1 July 2012 Part 2

Clean Energy (Consequential Amendments) Bill 2011 No. , 2011 79

(a) a person is a liable entity for a fixed charge year; and

(b) the person has an interim emissions number for the fixed

charge year;

the person must, in accordance with this section, provide a report

to the Regulator relating to:

the fixed charge year; and

(d) if an interim emissions number of the person for the fixed

charge year is attributable to scope 1 emissions of greenhouse

gas--those emissions; and

(e) if an interim emissions number of the person for the fixed

charge year is attributable to potential greenhouse gas

emissions embodied in an amount of natural gas--those

potential greenhouse gas emissions.

Civil penalty:

(a) for an individual--2,000 penalty units; or

(b) otherwise--10,000 penalty units.

Note 1:

Under Division 137 of the Criminal Code, it may be an offence to

provide false or misleading information or documents to the Regulator

in purported compliance with this Act.

Note 2:

Under section 30, a person may be liable for an additional civil

penalty for each day after the end of the period mentioned in

paragraph (2)(c) of this section for which the person fails to provide a

report in accordance with this section.

(2) A report under this section must:

(a) be given in a manner and form approved by the Regulator;

and

(b) set out the information specified by the regulations for the

purposes of this paragraph; and

eligible financial year.

(3) Regulations made for the purposes of paragraph (2)(b) may specify

different requirements for different circumstances.

22B Records to be kept--general

(1) A person who is or was a liable entity for an eligible financial year

must keep records of the person's activities that:

(a) allow the person to report accurately under section 22A; and

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Part 2 Amendments commencing on 1 July 2012

80 Clean Energy (Consequential Amendments) Bill 2011 No. , 2011

(b) enable the Regulator to ascertain whether the person has

complied with the person's obligations under section 22A;

and

regulations made for the purposes of subsection (3).

Civil penalty:

(a) for an individual--2,000 penalty units; or

(b) otherwise--10,000 penalty units.

(2) The person must retain the records for 5 years from the end of the

financial year in which the activities take place.

(3) The regulations may specify requirements relating to:

(a) the kinds of records; and

(b) the form of records;

that must be kept under subsection (1).

22C Records to be kept--fixed charge year

(1) A person who is or was a liable entity for a fixed charge year must

keep records of the person's activities that:

(a) allow the person to report accurately under section 22AA;

and

(b) enable the Regulator to ascertain whether the person has

complied with the person's obligations under section 22AA;

and

regulations made for the purposes of subsection (3).

Civil penalty:

(a) for an individual--2,000 penalty units; or

(b) otherwise--10,000 penalty units.

(2) The person must retain the records for 5 years from the end of the

fixed charge year in which the activities take place.

(3) The regulations may specify requirements relating to:

(a) the kinds of records; and

(b) the form of records;

that must be kept under subsection (1).

General amendments Schedule 1

Amendments commencing on 1 July 2012 Part 2

Clean Energy (Consequential Amendments) Bill 2011 No. , 2011 81

Part 3D--Reporting obligations of holders of

liability transfer certificates

22E Report to be given to Regulator

(1) If a person was the holder of a financial control liability transfer

certificate in relation to a facility during the whole or a part of an

eligible financial year, the person must, in accordance with this

section, provide a report to the Regulator relating to the:

(a) greenhouse gas emissions; and

(b) energy production; and

(c)

energy

consumption;

from the operation of the facility during the whole, or the part, as

the case may be, of that eligible financial year.

Civil penalty:

(a) for an individual--2,000 penalty units; or

(b) otherwise--10,000 penalty units.

Note 1:

Under Division 137 of the Criminal Code, it may be an offence to

provide false or misleading information or documents to the Regulator

in purported compliance with this Act.

Note 2:

Under section 30, a person may be liable for an additional civil

penalty for each day after the end of the period mentioned in

paragraph (2)(d) for which the person fails to provide a report in

accordance with this section.

(2) A report under this section must:

(a) be given in a manner and form approved by the Regulator;

and

(b) be based on:

(i) methods determined by the Minister under subsection

10(3); or

(ii) methods which meet criteria determined by the Minister

under that subsection;

where the use of those methods satisfies any conditions

specified in the determination under that subsection; and

purposes of this paragraph; and

Schedule 1 General amendments

Part 2 Amendments commencing on 1 July 2012

82 Clean Energy (Consequential Amendments) Bill 2011 No. , 2011

(d) be given to the Regulator before the end of 4 months after the

end of the eligible financial year.

(3) Regulations made for the purposes of paragraph (2)(c) may specify

different requirements for different circumstances.

(4) In particular, and without limiting subsection (3), the regulations

may specify different requirements for persons who:

(a) do not meet any threshold; or

(b) do not meet specified thresholds;

for an eligible financial year to which a report relates.

(5) Regulations made for the purposes of paragraph (2)(c) may also

specify information that a State or Territory has requested the

Regulator to collect.

(6) The regulations may provide that a person is not required to

provide a report under subsection (1) for an eligible financial year

in relation to a facility if the facility does not meet a specified

threshold for the eligible financial year.

(7) Reports under this section and section 22A may be set out in the

same document.

22F Records to be kept

(1) A person who is or was required to provide a report under

section 22E for an eligible financial year must keep records of the

person's activities that:

(a) allow the person to report accurately under section 22E; and

(b) enable the Regulator to ascertain whether the person has

complied with the person's obligations under section 22E;

and

regulations made for the purposes of subsection (3).

Civil penalty:

(a) for an individual--2,000 penalty units; or

(b) otherwise--10,000 penalty units.

(2) The person must retain the records for 5 years from the end of the

financial year in which the activities take place.

General amendments Schedule 1

Amendments commencing on 1 July 2012 Part 2

Clean Energy (Consequential Amendments) Bill 2011 No. , 2011 83

(3) The regulations may specify requirements relating to:

(a) the kinds of records; and

(b) the form of records;

that must be kept under subsection (1).

368 After subsection 22G(1)

Insert:

(1A) Subsection (1) does not apply to:

(a) greenhouse gas emissions; or

(b) energy production; or

(c)

energy

consumption;

unless the Minister has, under subsection 10(3), determined:

(d) methods by which the amounts of the emissions, production

or consumption, as the case may be, are to be measured; or

(e) criteria for methods by which the amounts of emissions,

production or consumption, as the case may be, are to be

measured.

Note:

Paragraph (2)(b) requires that a report under this section must be

based on methods, or methods which meet criteria, determined under

subsection 10(3).

368A Subsection 22H(2)

Omit "7 years", substitute "5 years".

369 After Part 3E

Insert:

Part 3F--Reporting obligations transferred to

member of corporate group

22X Reporting obligations transferred to member of corporate

group

Scope

(1) This section applies if:

(a)

either:

Schedule 1 General amendments

Part 2 Amendments commencing on 1 July 2012

84 Clean Energy (Consequential Amendments) Bill 2011 No. , 2011

(i) a facility is under the operational control of a member

(the responsible member) of a controlling corporation's

group during the whole or a part of a financial year; or

(ii) during the whole or a part of a financial year, a member

(the responsible member) of a controlling corporation's

group is the holder of a liability transfer certificate that

was issued under section 83 of the Clean Energy Act

2011 in relation to a facility; and

(b) the controlling corporation and the responsible member have

agreed to transfer reporting obligations for the facility to the

responsible member; and

corporation and the responsible member have jointly notified

the Regulator, in writing, of:

(i) the agreement; and

(ii) the facility to which the agreement relates.

Obligation to report

(2) The responsible member must, in accordance with this section and

in respect of the financial year, provide a report to the Regulator

relating to the:

(a) greenhouse gas emissions; and

(b) energy production; and

(c)

energy

consumption;

from the operation of the facility during the whole, or the part, as

the case may be, of the financial year.

Civil penalty:

2,000 penalty units.

Note 1:

Under Division 137 of the Criminal Code, it may be an offence to

provide false or misleading information or documents to the Regulator

in purported compliance with this Act.

Note 2:

Under section 30, a responsible member may be liable for an

additional civil penalty for each day after the end of the period

mentioned in paragraph (4)(d) for which the responsible member fails

to provide a report in accordance with this section.

(3) Subsection (1) does not apply to:

(a) greenhouse gas emissions; or

(b) energy production; or

(c)

energy

consumption;

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unless the Minister has, under subsection 10(3), determined:

(d) methods by which the amounts of the emissions, production

or consumption, as the case may be, are to be measured; or

(e) criteria for methods by which the amounts of emissions,

production or consumption, as the case may be, are to be

measured.

Note:

Paragraph (4)(b) requires that a report under this section must be

based on methods, or methods which meet criteria, determined under

subsection 10(3).

(4) A report under this section must:

(a) be given in a manner and form approved by the Regulator;

and

(b) be based on:

(i) methods determined by the Minister under subsection

10(3); or

(ii) methods which meet criteria determined by the Minister

under that subsection;

where the use of those methods satisfies any conditions

specified in the determination under that subsection; and

purposes of this paragraph; and

(d) be given to the Regulator before the end of 4 months after the

end of each financial year.

(5) Regulations made for the purposes of paragraph (4)(c) may specify

different requirements for different circumstances.

(6) Regulations made for the purposes of paragraph (4)(c) may also

specify information that a State or Territory has requested the

Regulator to collect.

22XA Records to be kept

(1) A person who is or was required to provide a report under

section 22X for a financial year must keep records of the person's

activities that:

(a) allow the person to report accurately under section 22X; and

(b) enable the Regulator to ascertain whether the person has

complied with the person's obligations under section 22X;

and

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regulations made for the purposes of subsection (3).

Civil penalty:

1,000 penalty units.

(2) The person must retain the records for 5 years from the end of the

financial year in which the activities take place.

(3) The regulations may specify requirements relating to:

(a) the kinds of records; and

(b) the form of records;

that must be kept under subsection (1).

370 Subsection 23(1) (penalty)

Repeal the penalty, substitute:

Penalty: Imprisonment for 2 years or 120 penalty units, or both.

371 Subsections 24(1) and (1A)

Repeal the subsections (not including the heading), substitute:

(1) The Regulator must, by 28 February in a financial year, publish the

following on its website in relation to a registered corporation's

group:

(a) totals of greenhouse gas emissions that are scope 1 emissions

reported under Part 3 or 3F in relation to the corporation's

group for the previous financial year;

(b) totals of greenhouse gas emissions that are scope 2 emissions

reported under Part 3 or 3F in relation to the corporation's

group for the previous financial year;

(i) reported under Part 3 or 3F in relation to the

corporation's group for the previous financial year; and

(ii) adjusted in accordance with the regulations.

(1A) In addition to publishing information for the corporation's group in

accordance with subsection (1), the Regulator may also publish on

its website:

(a) totals of greenhouse gas emissions that are scope 1 emissions

for:

(i) each member of the corporation's group; or

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(ii) each business unit in relation to the corporation's group;

reported under Part 3 or 3F in relation to the corporation's

group for the previous financial year; and

(b) totals of greenhouse gas emissions that are scope 2 emissions

for:

(i) each member of the corporation's group; or

(ii) each business unit in relation to the corporation's group;

reported under Part 3 or 3F in relation to the corporation's

group for the previous financial year; and

corporation's group, or each business unit in relation to the

corporation's group:

(i) reported under Part 3 or 3F in relation to the

corporation's group for the previous financial year; and

(ii) adjusted in accordance with the regulations; and

(d) the methods mentioned in paragraph 19(6)(b) or 22X(4)(b)

that were used to measure:

(i) the totals for the corporation's group referred to in

paragraphs (1)(a) and (b); and

(ii) the totals of energy consumption reported under Part 3

or 3F in relation to the corporation's group for the

previous financial year; and

(e) the rating given to each of those methods under the

determination under subsection 10(3).

This subsection is subject to subsection 25(3).

375 After subsection 24(1A)

Insert:

(1AA) If a person gives the Regulator a report under section 22A in

relation to an eligible financial year, the Regulator must publish on

its website, by 28 February next following the eligible financial

year:

(a) the total of the numbers specified in the report as the person's

provisional emissions numbers for the eligible financial year;

and

(b) if any of those provisional emissions numbers are attributable

to scope 1 emissions of greenhouse gas--the total of those

provisional emissions numbers; and

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to potential greenhouse gas emissions embodied in an

amount of natural gas--the total of those provisional

emissions numbers.

375A Subsection 24(1AD)

Omit "a corporation", substitute "a person".

375B Subsection 24(1AD)

After "section", insert "22E or".

376 Subsection 24(1AD)

Omit "a website", substitute "its website".

377 Subsection 24(1AE)

Omit "the website", substitute "its website".

377A Paragraph 24(1AE)(a)

After "paragraph", insert "22E(2)(b) or".

378 After subsection 24(1AE)

Insert:

(1AF) If the amount of greenhouse gas emitted, and the amount of energy

produced, from the operation of a designated generation facility

during a financial year is set out in a report under this Act for the

financial year, the Regulator must publish those amounts on its

website by 28 February next following the financial year.

(1AG) If the amounts of greenhouse gases emitted from the operation of 2

or more designated generation facilities during a financial year are

set out in a report under this Act for the financial year, the

Regulator must publish the total of those amounts on its website by

28 February next following the financial year.

(1AH) If the amounts of energy produced from the operation of 2 or more

designated generation facilities during a financial year are set out

in a report under this Act for the financial year, the Regulator must

publish the total of those amounts on its website by 28 February

next following the financial year.

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379 Subsection 24(1C)

Omit "a website the fact that the totals", substitute "its website the fact

that the totals or adjusted totals".

379A Subsection 24(1G)

Omit "a website", substitute "its website".

380 After subsection 24(1G)

Insert:

(1H) The Regulator must not publish information mentioned in

subsection (1AD) that is reported by a person under section 22E or

22G for a financial year in relation to a facility unless the operation

of the facility during the financial year causes:

(a) emissions of greenhouse gases that have a carbon dioxide

equivalence of 25 kilotonnes or more; or

(b) production of energy of 100 terajoules or more; or

(1J) If the person was the holder of the relevant reporting transfer

certificate or financial control liability transfer certificate in

relation to the facility for a number of, but not all, days in the

financial year (the control days), paragraphs (1H)(a), (b) and (c)

have effect as though each amount mentioned in the relevant

paragraph were replaced by the amount worked out using the

following formula:

Number of control days

Amount that would otherwise apply

Number of days in the year

�

(1K) Subsection (1H) does not apply to:

(a) greenhouse gas emissions; or

(b) energy production; or

(c)

energy

consumption;

unless the Minister has, under subsection 10(3), determined:

(d) methods by which the amounts of the emissions, production

or consumption, as the case may be, are to be measured; or

(e) criteria for methods by which the amounts of emissions,

production or consumption, as the case may be, are to be

measured.

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381 Subsections 24(2) and (3)

Omit "a website", substitute "its website".

384 Subsection 25(1)

Omit "or" (first occurring).

385 Subsection 25(1)

After "section 20,", insert "or a person required to provide a report

under section 22A, 22AA, 22E or 22X".

386 At the end of section 25

Add:

(5) This section does not apply to information required to be published

under subsection 24(1AF).

387 Subsection 30(2) (civil penalty)

Repeal the civil penalty, substitute:

Civil penalty:

100 penalty units per day.

388 After subsection 30(2)

Insert:

(2A) If, under section 15A, 15AA, 22A, 22AA, 22E, 22X, 74AA or

74B, an act or thing is required to be done within a particular

period, or before a particular time, and a person fails to comply

with that requirement, the person is liable for a civil penalty for

each day that the person fails to comply.

Civil penalty:

(a) for an individual--20 penalty units per day; or

(b) otherwise--100 penalty units per day.

389 Subsection 31(4)

Omit "must have regard", substitute "may have regard".

390 At the end of subsection 31(4)

Add:

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; and (e) the extent to which the person has co-operated with the

authorities; and

(f) if the person is a body corporate:

(i) the level of the employees, officers or agents of the

body corporate involved in the contravention; and

(ii) whether the body corporate exercised due diligence to

avoid the contravention; and

(iii) whether the body corporate had a corporate culture

conducive to compliance.

391 Division 4 of Part 5 (heading)

Repeal the heading, substitute:

Division 4--Liability of executive officers of bodies

corporate

391A Section 47 (heading)

Repeal the heading, substitute:

47 Civil penalties for executive officers of bodies corporate

392 Paragraph 47(1)(a)

Omit "corporation", substitute "body corporate".

393 Paragraph 47(1)(b)

Omit "chief".

394 Paragraphs 47(1)(b) and (c)

Omit "corporation", substitute "body corporate".

395 After subsection 47(1)

Insert:

(1A) For the purposes of subsection (1), the officer is reckless as to

whether the contravention would occur if:

(a) the officer is aware of a substantial risk that the contravention

would occur; and

(b) having regard to the circumstances known to the officer, it is

unjustifiable to take the risk.

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(1B) For the purposes of subsection (1), the officer is negligent as to

whether the contravention would occur if the officer's conduct

involves:

(a) such a great falling short of the standard of care that a

reasonable person would exercise in the circumstances; and

(b) such a high risk that the contravention would occur; and

that the conduct merits the imposition of a pecuniary penalty.

396 Subsection 47(3)

Omit "corporation", substitute "body corporate".

396A Section 48 (heading)

Repeal the heading, substitute:

48 Did an executive officer take reasonable steps to prevent

contravention?

397 Subsection 48(1)

Omit "a chief", substitute "an".

398 Subsection 48(1)

Omit "corporation" (first occurring), substitute "body corporate".

399 Subparagraph 48(1)(a)(i)

Omit "corporation", substitute "body corporate".

400 Subparagraph 48(1)(a)(i)

Omit "corporation's", substitute "body corporate's".

401 Subparagraph 48(1)(a)(ii)

Omit "corporation", substitute "body corporate".

402 Subparagraph 48(1)(a)(iii)

Omit "corporation's", substitute "body corporate's".

403 Paragraph 48(1)(b)

Omit "that the corporation was contravening this Act or the

regulations", substitute "of the contravention".

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403A Section 54 (heading)

Repeal the heading, substitute:

54 Regulator may declare facility--group

404 Subsection 54(5)

Omit "corporation, joint venture or partnership", substitute "person".

405 After section 54

Insert:

54A Regulator may declare facility--non-group entity

(1) The Regulator may declare that an activity or series of activities

(including ancillary activities) are a facility:

(a) on application by a non-group entity; or

(b) on the Regulator's own initiative.

(2) An application must:

(a) identify the facility for which a declaration is sought; and

(b) include any other information required by the regulations;

and

(3) In considering making a declaration that an activity or series of

activities are a facility, the Regulator must have regard to:

(a) the matters dealt with in regulations made for the purposes of

paragraph 9(1)(a); and

(b) the need for each facility to be distinct from, and not overlap

with, activities that constitute other facilities.

(4) The Regulator must notify, in writing, an applicant under

paragraph (1)(a) of a decision under subsection (1) to declare a

facility or to refuse the application.

(5) If the Regulator makes a declaration under paragraph (1)(b), the

Regulator must notify, in writing, the person that has, or that the

Regulator reasonably believes has, operational control of the

facility to which the declaration relates.

406 After subsection 55(3)

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Insert:

(3A) The Regulator must not declare that a controlling corporation or

another member of the corporation's group has operational control

of a facility unless the Regulator is satisfied that the corporation or

member has substantial authority to introduce and implement either

or both of the following for the facility:

(a)

operating

policies;

(b)

environmental

policies.

(3B) The Regulator must not declare that a member of a controlling

corporation's group (other than the controlling corporation) has

operational control of a facility on application made by the member

unless the controlling corporation has given written consent to the

making of the declaration.

407 At the end of Division 2 of Part 6

Add:

55A Regulator may declare non-group entity has operational control

(1) The Regulator may declare that a non-group entity has operational

control of a facility:

(a) on application by the non-group entity; or

(b) on the Regulator's own initiative.

(2) An application must:

(a) identify the facility for which a declaration of operational

control is sought; and

(b) include any other information required by the regulations;

and

(3) In considering making a declaration that a non-group entity has

operational control of a facility, the Regulator must have regard to

the matters dealt with in paragraph 11(1)(a) and regulations made

for the purposes of that paragraph.

(4) The Regulator must not declare that a non-group entity has

operational control of a facility unless the Regulator is satisfied

that the non-group entity has substantial authority to introduce and

implement either or both of the following for the facility:

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(a)

operating

policies;

(b)

environmental

policies.

(5) The Regulator must notify, in writing, an applicant under

paragraph (1)(a) of a decision under subsection (1) to declare the

non-group entity to have operational control of the facility or to

refuse the application.

(6) If the Regulator makes a declaration under paragraph (1)(b), the

Regulator must notify, in writing, the non-group entity which the

Regulator has declared to have operational control of the facility to

which the declaration relates.

408 After paragraph 56(a)

Insert:

(aa) not register a person under section 18A;

409 Paragraph 56(b)

Omit "corporation under section 18", substitute "person under

section 18B".

410 After paragraph 56(g)

Insert:

(ga) refuse an application under section 54A;

(gb) declare a facility under paragraph 54A(1)(b);

411 At the end of section 56

Add:

; (k) refuse an application under section 55A;

(l) declare that a non-group entity has operational control of a

facility under paragraph 55A(1)(b).

412 Subsection 61(3) (penalty)

Repeal the penalty, substitute:

Penalty: Imprisonment for 6 months or 30 penalty units, or both.

413 Subsection 69(2) (penalty)

Repeal the penalty, substitute:

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96 Clean Energy (Consequential Amendments) Bill 2011 No. , 2011

Penalty: 30 penalty units.

414 Before section 75

Insert:

74AA Audit of persons providing reports under section 22A

(1) This section applies if:

(a) a person is required to provide a report under section 22A for

an eligible financial year; and

(b) the person's emissions number for the eligible financial year

exceeds the number specified in the regulations in relation to

the eligible financial year.

(2)

The

person

must:

(a) appoint as an audit team leader a registered greenhouse and

energy auditor of the person's choice; and

(b) arrange for the audit team leader to carry out an audit of:

(i) the section 22A report; and

(ii) such other matters (if any) relating to the section 22A

report as are specified in the regulations; and

(iii) the person's compliance with section 22B in relation to

the eligible financial year; and

report setting out the results of the audit; and

(d) give the Regulator a copy of the audit report:

(i) on the day on which the section 22A report is provided

to the Regulator; and

(ii) in the manner specified in the regulations.

Civil penalty:

(a) for an individual--200 penalty units; or

(b) otherwise--1,000 penalty units.

Note:

Under section 30, a person may be liable for an additional civil

penalty for each day after the day mentioned in paragraph (d) for

which the person fails to provide an audit report in accordance with

this section.

(3) The regulations may specify:

(a) the type of audit to be carried out; and

(b) the matters to be covered by the audit; and

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contain.

(4) The person must provide the audit team leader and any audit team

members with all reasonable facilities and assistance necessary for

the effective exercise of the audit team leader's duties under this

Act.

Civil penalty:

(a) for an individual--50 penalty units; or

(b) otherwise--250 penalty units.

74B Audits of certain entities--compliance

(1) For the purposes of this section, a person is a relevant person if:

(a) the following subparagraphs apply:

(i) the person is a non-group entity;

(ii) the Regulator has reasonable grounds to suspect that the

person has contravened, is contravening, or is proposing

to contravene, this Act or the regulations; or

(b) the following subparagraphs apply:

(i) the person is the responsible member mentioned in

subsection 22X(1);

(ii) the person is not a registered corporation;

(iii) the Regulator has reasonable grounds to suspect that the

person has contravened, is contravening, or is proposing

to contravene, this Act or the regulations.

(2) The Regulator may, by written notice given to a relevant person,

require the relevant person to:

(a) appoint as an audit team leader:

(i) a registered greenhouse and energy auditor of the

relevant person's choice; or

(ii) if the Regulator specifies a registered greenhouse and

energy auditor in the notice--that auditor; or

(iii) if the Regulator specifies more than one registered

greenhouse and energy auditor in the notice--any one

of those auditors; and

(b) arrange for the audit team leader to carry out an audit on one

or more aspects of the relevant person's compliance with this

Act or the regulations; and

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written report setting out the results of the audit; and

(d) give the Regulator a copy of the audit report on or before the

day specified in the notice.

(3) The notice must specify:

(a) the type of audit to be carried out; and

(b) the matters to be covered by the audit; and

contain.

(4) The relevant person must provide the audit team leader and any

audit team members with all reasonable facilities and assistance

necessary for the effective exercise of the audit team leader's

duties under this Act.

Civil penalty:

(a) for an individual--50 penalty units; or

(b) otherwise--250 penalty units.

(5) If the Regulator gives the relevant person written notice under

subsection (2), the relevant person must comply with the

requirements of the notice.

Civil penalty:

(a) for an individual--200 penalty units; or

(b) otherwise--1,000 penalty units.

Note:

Under section 30, a relevant person may be liable for an additional

civil penalty for each day after the day mentioned in paragraph (2)(d)

for which the relevant person fails to provide an audit report in

accordance with this section.

74C Audits of certain entities--other

(1) For the purposes of this section, a person is a relevant person if:

(a) the person is a non-group entity; or

(b) the person:

(i) is the responsible member mentioned in subsection

22X(1); and

(ii) is not a registered corporation.

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(2) The Regulator may appoint a registered greenhouse and energy

auditor as an audit team leader to carry out an audit of a relevant

person's compliance with one or more aspects of this Act or the

regulations.

(3) The Regulator must give written notice to the relevant person of a

decision to appoint an audit team leader under subsection (2). The

notice must:

(a) specify the audit team leader; and

(b) specify the period within which the audit is to be undertaken;

and

(d) specify the matters to be covered by the audit; and

(e) be given to the relevant person at a reasonable time before

the audit is to be undertaken.

(4) The relevant person must provide the audit team leader and any

audit team members with all reasonable facilities and assistance

necessary for the effective exercise of the audit team leader's

duties under this Act.

Civil penalty:

(a) for an individual--50 penalty units; or

(b) otherwise--250 penalty units.

(5) If a relevant person is given a notice under subsection (3), the

relevant person must arrange for the audit team leader to carry out

the audit.

Civil penalty:

(a) for an individual--200 penalty units; or

(b) otherwise--1,000 penalty units.

415 Subsection 75A(7)

Omit "signed", substitute "written".

415A After section 76

Insert:

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100 Clean Energy (Consequential Amendments) Bill 2011 No. , 2011

76A Periodic reviews of operation of this Act etc.

(1) The Climate Change Authority must conduct reviews of the

operation of:

(a) this Act; and

(b) legislative instruments under this Act.

Public consultation

(2) A review under subsection (1) must make provision for public

consultation.

Report

(3) The Climate Change Authority must:

(a) give the Minister a report of the review; and

(b) as soon as practicable after giving the report to the Minister,

publish the report on the Climate Change Authority's

website.

(4) The Minister must cause copies of a report under subsection (3) to

be tabled in each House of the Parliament within 15 sitting days of

that House after the review is completed.

First review

(5) The first review under subsection (1) must be completed during the

period:

(a) beginning at the start of 30 June 2016; and

(b) ending at the end of 31 December 2018.

Subsequent reviews

(6) Each subsequent review under subsection (1) must be completed

within 5 years after the deadline for completion of the previous

review.

(7) For the purposes of subsections (4), (5) and (6), a review is

completed when the report of the review is given to the Minister

under subsection (3).

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Recommendations

(8) A report of a review under subsection (1) may set out

recommendations to the Commonwealth Government.

(9) In formulating a recommendation that the Commonwealth

Government should take particular action, the Climate Change

Authority must analyse the costs and benefits of that action.

(10) Subsection (9) does not prevent the Climate Change Authority

from taking other matters into account in formulating a

recommendation.

(11) If a report of a review under subsection (1) sets out one or more

recommendations to the Commonwealth Government, the report

must set out the Climate Change Authority's reasons for those

recommendations.

Government response to recommendations

(12) If a report of a review under subsection (1) sets out one or more

recommendations to the Commonwealth Government:

(a) as soon as practicable after receiving the report, the Minister

must cause to be prepared a statement setting out the

Commonwealth Government's response to each of the

recommendations; and

(b) within 6 months after receiving the report, the Minister must

cause copies of the statement to be tabled in each House of

the Parliament.

(13) The Commonwealth Government's response to the

recommendations may have regard to the views of the following:

(a) the Climate Change Authority;

(b)

the

Regulator;

76B Special reviews of operation of this Act etc.

Scope

(1) This section applies if:

(a) the Minister, by written instrument given to the Chair of the

Climate Change Authority, requests the Climate Change

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102 Clean Energy (Consequential Amendments) Bill 2011 No. , 2011

Authority to conduct a review under this section of such

matters as are specified in the instrument; and

(b) the matters specified in the instrument are covered by

subsection (4).

Review

(2) The Climate Change Authority must conduct a review of those

matters.

Consultation

(3) In conducting a review, the Climate Change Authority must make

provision for public consultation.

Covered matters

(4) This subsection covers the operation of:

(a) this Act; and

(b) legislative instruments under this Act.

Report

(5) The Climate Change Authority must:

(a) give the Minister a report of the review; and

(b) as soon as practicable after giving the report to the Minister,

publish the report on the Climate Change Authority's

website.

(6) The Minister must cause copies of a report under subsection (5) to

be tabled in each House of the Parliament within 15 sitting days of

that House after the completion of the preparation of the report.

Recommendations

(7) A report of a review under subsection (2) may set out

recommendations to the Commonwealth Government.

(8) In formulating a recommendation that the Commonwealth

Government should take particular action, the Climate Change

Authority must analyse the costs and benefits of that action.

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(9) Subsection (8) does not prevent the Climate Change Authority

from taking other matters into account in formulating a

recommendation.

(10) If a report of a review under subsection (2) sets out one or more

recommendations to the Commonwealth Government, the report

must set out the Climate Change Authority's reasons for those

recommendations.

Government response to recommendations

(11) If a report of a review under subsection (2) sets out one or more

recommendations to the Commonwealth Government:

(a) as soon as practicable after receiving the report, the Minister

must cause to be prepared a statement setting out the

Commonwealth Government's response to each of the

recommendations; and

(b) within 6 months after receiving the report, the Minister must

cause copies of the statement to be tabled in each House of

the Parliament.

(12) The Commonwealth Government's response to the

recommendations may have regard to the views of the following:

(a) the Climate Change Authority;

(b)

the

Regulator;

Ozone Protection and Synthetic Greenhouse Gas

Management Act 1989

415B Paragraph 3(d)

After "Climate Change", insert "and the Kyoto Protocol".

416 Subsection 7(1)

Omit "(1)" (first occurring).

416A Subsection 7(1) (definition of licence)

Omit "or a used substances licence", substitute ", a used substances

licence or an ODS/SGG equipment licence".

416B Subsection 7(1)

Schedule 1 General amendments

Part 2 Amendments commencing on 1 July 2012

104 Clean Energy (Consequential Amendments) Bill 2011 No. , 2011

Insert:

Kyoto Protocol means the Kyoto Protocol to the United Nations

Framework Convention on Climate Change, done at Kyoto on

11 December 1997, as amended and in force for Australia from

time to time.

Note:

The text of the Kyoto Protocol is set out in Australian Treaty Series

2008 No. 2 ([2008] ATS 2). In 2011, the text of an international

agreement in the Australian Treaty Series was accessible through the

Australian Treaties Library on the AustLII website

(www.austlii.edu.au).

417 Subsection 7(1)

Insert:

ODS equipment has the meaning given by section 8C.

418 Subsection 7(1)

Insert:

ODS/SGG equipment licence means an ODS/SGG equipment

licence under section 13A.

419 Subsection 7(1) (definition of pre-charged equipment)

Repeal the definition.

420 Subsection 7(1) (definition of pre-charged equipment

licence)

Repeal the definition.

420A Subsection 7(1) (paragraph (b) of the definition of

recycled or used HCFCs)

Omit "after undergoing a cleaning process", substitute "or destroyed".

420B Subsection 7(1) (paragraph (b) of the definition of

recycled or used methyl bromide)

Omit "after undergoing a cleaning process", substitute "or destroyed".

420C Subsection 7(1) (paragraph (b) of the definition of

recycled stage-1 or stage-2 scheduled substances)

Omit "after undergoing a cleaning process", substitute "or destroyed".

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Clean Energy (Consequential Amendments) Bill 2011 No. , 2011 105

421 Subsection 7(1) (definition of SGG or synthetic

greenhouse gas)

Omit "or a PFC", substitute ", a PFC or sulfur hexafluoride".

421A Subsection 7(1)

Insert:

SGG equipment has the meaning given by section 8D.

422 Subsection 7(1)

Insert:

sulfur hexafluoride means the substance referred to in Part XI of

Schedule 1, whether existing alone or in a mixture.

423 After section 8B

Insert:

8C ODS equipment

For the purposes of this Act, ODS equipment means

air-conditioning equipment, or refrigeration equipment, that

contains a substance that is an HCFC or, but for section 9, would

be an HCFC.

8D SGG equipment

(1) For the purposes of this Act, SGG equipment means:

(a) equipment, or a product, that contains a substance that is an

HFC or a PFC; or

(b) equipment, or a product, that contains a substance that is

sulfur hexafluoride;

but does not include:

(d) equipment, or a product, specified in a legislative instrument

made by the Minister.

(2) Unless sooner revoked, a legislative instrument made under

paragraph (1)(d) ceases to be in force 12 months after it is

registered under the Legislative Instruments Act 2003.

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106 Clean Energy (Consequential Amendments) Bill 2011 No. , 2011

424A Section 9 (heading)

Repeal the heading, substitute:

9 Scheduled substances (other than SGGs) in manufactured

products

424B Subsection 9(1)

After "Schedule 1", insert "(other than a substance referred to in

Part IX, X or XI of that Schedule)".

425 Subsection 13(6A)

Repeal the subsection, substitute:

(6A) A person must not import ODS equipment or SGG equipment

unless:

(a) the person holds an ODS/SGG equipment licence; or

(b) the following conditions are satisfied:

(i) the equipment is kept by the person, or by a member of

the person's household, wholly or principally for private

or domestic use;

(ii) the equipment is prescribed by the regulations or

specified in a legislative instrument made by the

Minister;

(iii) if the equipment is prescribed by regulations made for

the purposes of subparagraph (ii)--the conditions (if

any) prescribed by the regulations;

(iv) if the equipment is specified in an instrument made by

the Minister under subparagraph (ii)--the conditions (if

any) specified in a legislative instrument made by the

Minister.

(6B) Unless sooner revoked, a legislative instrument made by the

Minister under subparagraph (6A)(b)(ii) or (iv) ceases to be in

force 12 months after it is registered under the Legislative

Instruments Act 2003.

426 Subsection 13(9) (note 2)

Omit "subsection 65AC(4)", substitute "subsections 65AC(4) and

(4A)".

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Clean Energy (Consequential Amendments) Bill 2011 No. , 2011 107

427 Paragraph 13A(1)(d)

Omit "a pre-charged equipment licence", substitute "an ODS/SGG

equipment licence".

428 Subsection 13A(5)

Repeal the subsection, substitute:

(5) An ODS/SGG equipment licence allows the licensee to import

ODS equipment or SGG equipment.

429 Subsection 16(3)

Omit "a pre-charged equipment licence", substitute "an ODS/SGG

equipment licence".

430 Subsection 19(4)

Omit "A pre-charged equipment licence", substitute "An ODS/SGG

equipment licence".

431 Subsection 19A(2)

Omit "a pre-charged equipment licence", substitute "an ODS/SGG

equipment licence".

431A Section 46 (heading)

Repeal the heading, substitute:

46 Quarterly reports by manufacturers, importers and exporters of

scheduled substances (other than SGGs and substances in

ODS equipment or SGG equipment)

432 Paragraph 46(1A)(b)

Omit "pre-charged equipment", substitute: "ODS equipment or SGG

equipment".

433 Subsection 46(1B)

Repeal the subsection.

434 Subsection 46(1BA)

Repeal the subsection.

Schedule 1 General amendments

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108 Clean Energy (Consequential Amendments) Bill 2011 No. , 2011

435 Subsection 46(1C)

Repeal the subsection.

436 Subsection 46(2AA)

Repeal the subsection.

437 Subsection 46(2A)

Omit "or (2AA)".

438 Subsection 46(2B)

Omit "or (2AA)".

439 Subsection 46(2D)

Repeal the subsection.

440 Subsection 46(2E)

Omit "Subsections (2C) and (2D) are civil penalty provisions",

substitute "Subsection (2C) is a civil penalty provision".

441 Subsection 46(2F)

Omit "Subsections (2C) and (2D) do not", substitute "Subsection (2C)

does not".

442 After section 46

Insert:

46A Quarterly reports by manufacturers, importers and exporters

of SGGs, ODS equipment or SGG equipment

Manufacturer

(1)

If:

(a) a person manufactures an SGG during:

(i) the quarter beginning on 1 July 2012; or

(ii) a later quarter; and

(b) the manufacture is not in circumstances prescribed by

regulations made for the purposes of paragraph 13(1A)(b);

the person must, before the 15th day after the end of the quarter,

give the Minister a report in accordance with the regulations.

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Clean Energy (Consequential Amendments) Bill 2011 No. , 2011 109

Importer

(2)

If:

(a) a person imports an SGG during:

(i) the quarter beginning on 1 July 2012; or

(ii) a later quarter; and

(b) the import is not in circumstances prescribed by regulations

made for the purposes of paragraph 13(1A)(b); and

equipment;

the person must, before the 15th day after the end of the quarter,

give the Minister a report in accordance with the regulations.

(3)

If:

(a) a person imports ODS equipment or SGG equipment during:

(i) the quarter beginning on 1 July 2012; or

(ii) a later quarter; and

(b) the import is not covered by paragraph 13(6A)(b);

the person must, before the 15th day after the end of the quarter,

give the Minister a report in accordance with the regulations.

Exporter

(4)

If:

(a) a person exports an SGG during:

(i) the quarter beginning on 1 July 2012; or

(ii) a later quarter; and

(b) the export is not in circumstances prescribed by regulations

made for the purposes of paragraph 13(1A)(b);

the person must, before the 15th day after the end of the quarter,

give the Minister a report in accordance with the regulations.

Offence

(5) A person commits an offence if:

(a) the person is subject to a requirement under subsection (1),

(2), (3) or (4); and

(b) the person omits to do an act; and

Schedule 1 General amendments

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110 Clean Energy (Consequential Amendments) Bill 2011 No. , 2011

Penalty: 60 penalty units.

(6) An offence under subsection (5) is an offence of strict liability.

Note:

For strict liability, see section 6.1 of the Criminal Code.

(7) Subsections (1), (2), (3) and (4) are civil penalty provisions.

Note 1:

Division 7 of Part VIII provides for pecuniary penalties for breaches

of civil penalty provisions.

Note 2:

For maximum penalty, see subsection 65AC(4).

442A Subparagraph 65AA(1)(a)(vii)

Omit "46; or", substitute "46;".

442B At the end of paragraph 65AA(1)(a)

Add:

(viii) section 46A; or

443 Subsection 65AC(4)

After "subsection", insert "13(1A) or (6A) or".

444 After subsection 65AC(4)

Insert:

(4A) The pecuniary penalty payable by a person in respect of a

contravention of subsection 13(1A) or (6A) must not exceed:

(a) if the person is not a body corporate--2,000 penalty units; or

(b) if the person is a body corporate--10,000 penalty units.

445 Before paragraph 65C(1)(a)

Insert:

(aa) amounts equal to the prescribed rate component of an amount

of levy received by the Commonwealth under section 3A of

the Ozone Protection and Synthetic Greenhouse Gas (Import

Levy) Act 1995;

(ab) amounts equal to the prescribed rate component of an amount

of levy received by the Commonwealth under section 4A of

the Ozone Protection and Synthetic Greenhouse Gas (Import

Levy) Act 1995;

(ac) amounts equal to the prescribed rate component of an amount

of levy received by the Commonwealth under section 3A of

General amendments Schedule 1

Amendments commencing on 1 July 2012 Part 2

Clean Energy (Consequential Amendments) Bill 2011 No. , 2011 111

the Ozone Protection and Synthetic Greenhouse Gas

(Manufacture Levy) Act 1995;

446 Subparagraph 65C(1)(a)(i)

Before "the", insert "section 4 or 4B of".

447 Subparagraph 65C(1)(a)(ii)

Before "the", insert "section 4 of".

447A Paragraph 65C(1)(b)

Omit "licence".

448 At the end of section 65C

Add:

Prescribed rate component

(4) For the purposes of paragraph (1)(aa), the prescribed rate

component of an amount of levy is so much of that amount as is

equal to the amount worked out using the following formula:

Number of

tonnes

Prescribed rate

of the SGG

�

where:

number of tonnes of the SGG means the number of tonnes of the

SGG to which the levy relates.

prescribed rate means the applicable rate prescribed by the

regulations made for the purposes of the definition of prescribed

rate in subsection 3A(7) of the Ozone Protection and Synthetic

Greenhouse Gas (Import Levy) Act 1995.

(5) For the purposes of paragraph (1)(ab), the prescribed rate

component of an amount of levy is so much of that amount as is

equal to the amount worked out using the following formula:

Number of

tonnes

of the SGG

Prescribed rate

contained in the

equipment

�

where:

Schedule 1 General amendments

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112 Clean Energy (Consequential Amendments) Bill 2011 No. , 2011

number of tonnes of the SGG contained in the equipment means

the number of tonnes of the SGG contained in the equipment to

which the levy relates.

prescribed rate means the applicable rate prescribed by the

regulations made for the purposes of the definition of prescribed

rate in subsection 4A(5) of the Ozone Protection and Synthetic

Greenhouse Gas (Import Levy) Act 1995.

(6) For the purposes of paragraph (1)(ac), the prescribed rate

component of an amount of levy is so much of that amount as is

equal to the amount worked out using the following formula:

Number of

tonnes

Prescribed rate

of the SGG

�

where:

number of tonnes of the SGG means the number of tonnes of the

SGG to which the levy relates.

prescribed rate means the rate prescribed by the regulations made

for the purposes of the definition of prescribed rate in subsection

3A(5) of the Ozone Protection and Synthetic Greenhouse Gas

(Manufacture Levy) Act 1995.

449 Subsection 69(1)

Repeal the subsection, substitute:

(1) A licence levy is due and payable:

(a) at the end of 60 days after the end of the quarter to which the

levy relates; or

(b) if the Minister allows the licensee concerned a longer

period--at the end of that longer period.

450 After section 69

Insert:

69AA Remission and refund of import levy--SGGs

Export by licensee

(1)

If:

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(a) levy is imposed by section 3A of the Ozone Protection and

Synthetic Greenhouse Gas (Import Levy) Act 1995 in respect

of the import of an SGG by a licensee; and

(b) the Minister is satisfied that the licensee exported the SGG

within 12 months (or such longer period as is prescribed by

the regulations) after the import; and

regulations, for remission or refund of the whole or a part of

the carbon charge component of the amount of the levy; and

(d) the application is accompanied by such information (if any)

as is specified in the regulations; and

(e) the application is accompanied by such documents (if any) as

are specified in the regulations; and

(f) the licensee is not exempt from the carbon charge component

of the amount of the levy (see section 3A of the Ozone

Protection and Synthetic Greenhouse Gas (Import Levy) Act

1995);

the Minister must, on behalf of the Commonwealth, remit or refund

the whole or a part of the carbon charge component of the amount

of the levy.

(2) For the purposes of subsection (1), the carbon charge component

of an amount of levy is so much of that amount as is equal to the

amount worked out using the following formula:

Number of tonnes

of the carbon

Applicable

dioxide equivalence

charge

of the SGG

�

where:

applicable charge means the charge that was the applicable charge

for the purposes of the application of subsection 3A(7) of the

Ozone Protection and Synthetic Greenhouse Gas (Import Levy) Act

1995 to the levy.

carbon dioxide equivalence has the same meaning as in the Ozone

Protection and Synthetic Greenhouse Gas (Import Levy) Act 1995.

(3) The regulations may provide for verification by statutory

declaration of statements in applications under subsection (1).

Schedule 1

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114 Clean Energy (Consequential Amendments) Bill 2011 No. , 2011

Export by purchaser

(4)

If:

(a) levy is imposed by section 3A of the Ozone Protection and

Synthetic Greenhouse Gas (Import Levy) Act 1995 in respect

of the import of an SGG by a licensee; and

(b) the Minister is satisfied that:

(i) the licensee sold the SGG to another person; and

(ii) the other person exported the SGG within 12 months (or

such longer period as is prescribed by the regulations)

after the import of the SGG; and

regulations, for remission or refund of the whole or a part of

the carbon charge component of the amount of the levy; and

(d) the application is accompanied by such information (if any)

as is specified in the regulations; and

(e) the application is accompanied by such documents (if any) as

are specified in the regulations; and

(f) the licensee is not exempt from the carbon charge component

of the amount of the levy (see section 3A of the Ozone

Protection and Synthetic Greenhouse Gas (Import Levy) Act

1995);

the Minister must, on behalf of the Commonwealth, remit or refund

the whole or a part of the carbon charge component of the amount

of the levy.

(5) For the purposes of subsection (4), the carbon charge component

of an amount of levy is so much of that amount as is equal to the

amount worked out using the following formula:

Number of tonnes

of the carbon

Applicable

dioxide equivalence

charge

of the SGG

�

where:

applicable charge means the charge that was the applicable charge

for the purposes of the application of subsection 3A(7) of the

Ozone Protection and Synthetic Greenhouse Gas (Import Levy) Act

1995 to the levy.

General amendments Schedule 1

Amendments commencing on 1 July 2012 Part 2

Clean Energy (Consequential Amendments) Bill 2011 No. , 2011 115

carbon dioxide equivalence has the same meaning as in the Ozone

Protection and Synthetic Greenhouse Gas (Import Levy) Act 1995.

(6) The regulations may provide for verification by statutory

declaration of statements in applications under subsection (4).

Assignment of right to receive refund

(7) The regulations may authorise a licensee to assign a right to

receive a refund under this section.

69AB Remission and refund of import levy--SGG equipment

Export by licensee

(1)

If:

(a) levy is imposed by section 4A of the Ozone Protection and

Synthetic Greenhouse Gas (Import Levy) Act 1995 in respect

of the import of SGG equipment by a licensee; and

(b) the Minister is satisfied that the licensee exported the

equipment within 12 months (or such longer period as is

prescribed by the regulations) after the import; and

regulations, for remission or refund of the whole or a part of

the carbon charge component of the amount of the levy; and

(d) the application is accompanied by such information (if any)

as is specified in the regulations; and

(e) the application is accompanied by such documents (if any) as

are specified in the regulations;

the Minister must, on behalf of the Commonwealth, remit or refund

the whole or a part of the carbon charge component of the amount

of the levy.

(2) For the purposes of subsection (1), the carbon charge component

of an amount of levy is so much of that amount as is equal to the

amount worked out using the following formula:

Number of tonnes

of the carbon

dioxide equivalence

Applicable

of the SGG

charge

contained in the

equipment

�

Schedule 1

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Amendments commencing on 1 July 2012

116 Clean Energy (Consequential Amendments) Bill 2011 No. , 2011

where:

applicable charge means the charge that was the applicable charge

for the purposes of the application of subsection 4A(5) of the

Ozone Protection and Synthetic Greenhouse Gas (Import Levy) Act

1995 to the levy.

carbon dioxide equivalence has the same meaning as in the Ozone

Protection and Synthetic Greenhouse Gas (Import Levy) Act 1995.

(3) For the purposes of subsection (2), disregard an SGG that is used,

or for use, for a purpose prescribed by regulations made for the

purposes of subsection 4A(7) of the Ozone Protection and

Synthetic Greenhouse Gas (Import Levy) Act 1995.

(4) The regulations may provide for verification by statutory

declaration of statements in applications under subsection (1).

Export by purchaser

(5)

If:

(a) levy is imposed by section 4A of the Ozone Protection and

Synthetic Greenhouse Gas (Import Levy) Act 1995 in respect

of the import of SGG equipment by a licensee; and

(b) the Minister is satisfied that:

(i) the licensee sold the equipment to another person; and

(ii) the other person exported the equipment within 12

months (or such longer period as is prescribed by the

regulations) after the import of the equipment; and

regulations, for remission or refund of the whole or a part of

the carbon charge component of the amount of the levy; and

(d) the application is accompanied by such information (if any)

as is specified in the regulations; and

(e) the application is accompanied by such documents (if any) as

are specified in the regulations;

the Minister must, on behalf of the Commonwealth, remit or refund

the whole or a part of the carbon charge component of the amount

of the levy.

General amendments Schedule 1

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Clean Energy (Consequential Amendments) Bill 2011 No. , 2011 117

(6) For the purposes of subsection (5), the carbon charge component

of an amount of levy is so much of that amount as is equal to the

amount worked out using the following formula:

Number of tonnes

of the carbon

dioxide equivalence

Applicable

of the SGG

charge

contained in the

equipment

�

where:

applicable charge means the charge that was the applicable charge

for the purposes of the application of subsection 4A(5) of the

Ozone Protection and Synthetic Greenhouse Gas (Import Levy) Act

1995 to the levy.

carbon dioxide equivalence has the same meaning as in the Ozone

Protection and Synthetic Greenhouse Gas (Import Levy) Act 1995.

(7) For the purposes of subsection (6), disregard an SGG that is used,

or for use, for a purpose prescribed by regulations made for the

purposes of subsection 4A(7) of the Ozone Protection and

Synthetic Greenhouse Gas (Import Levy) Act 1995.

(8) The regulations may provide for verification by statutory

declaration of statements in applications under subsection (5).

Assignment of right to receive refund

(9) The regulations may authorise a licensee to assign a right to

receive a refund under this section.

69AC Remission and refund of manufacture levy--SGGs

Export by licensee

(1)

If:

(a) levy is imposed by section 3A of the Ozone Protection and

Synthetic Greenhouse Gas (Manufacture Levy) Act 1995 in

respect of the manufacture of an SGG by a licensee; and

(b) the Minister is satisfied that the licensee exported the SGG

within 12 months (or such longer period as is prescribed by

the regulations) after the manufacture; and

Schedule 1

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Amendments commencing on 1 July 2012

118 Clean Energy (Consequential Amendments) Bill 2011 No. , 2011

regulations, for remission or refund of the whole or a part of

the carbon charge component of the amount of the levy; and

(d) the application is accompanied by such information (if any)

as is specified in the regulations; and

(e) the application is accompanied by such documents (if any) as

are specified in the regulations; and

(f) the licensee is not exempt from the carbon charge component

of the amount of the levy (see section 3A of the Ozone

Protection and Synthetic Greenhouse Gas (Manufacture

Levy) Act 1995);

the Minister must, on behalf of the Commonwealth, remit or refund

the whole or a part of the carbon charge component of the amount

of the levy.

(2) For the purposes of subsection (1), the carbon charge component

of an amount of levy is so much of that amount as is equal to the

amount worked out using the following formula:

Number of tonnes

of the carbon

Applicable

dioxide equivalence

charge

of the SGG

�

where:

applicable charge means the charge that was the applicable charge

for the purposes of the application of subsection 3A(5) of the

Ozone Protection and Synthetic Greenhouse Gas (Manufacture

Levy) Act 1995 to the levy.

carbon dioxide equivalence has the same meaning as in the Ozone

Protection and Synthetic Greenhouse Gas (Manufacture Levy) Act

1995.

(3) The regulations may provide for verification by statutory

declaration of statements in applications under subsection (1).

Export by purchaser

(4)

If:

(a) levy is imposed by section 3A of the Ozone Protection and

Synthetic Greenhouse Gas (Manufacture Levy) Act 1995 in

respect of the manufacture of an SGG by a licensee; and

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Clean Energy (Consequential Amendments) Bill 2011 No. , 2011 119

(b) the Minister is satisfied that:

(i) the licensee sold the SGG to another person; and

(ii) the other person exported the SGG within 12 months (or

such longer period as is prescribed by the regulations)

after the manufacture of the SGG; and

regulations, for remission or refund of the whole or a part of

the carbon charge component of the amount of the levy; and

(d) the application is accompanied by such information (if any)

as is specified in the regulations; and

(e) the application is accompanied by such documents (if any) as

are specified in the regulations; and

(f) the licensee is not exempt from the carbon charge component

of the amount of the levy (see section 3A of the Ozone

Protection and Synthetic Greenhouse Gas (Manufacture

Levy) Act 1995);

the Minister must, on behalf of the Commonwealth, remit or refund

the whole or a part of the carbon charge component of the amount

of the levy.

(5) For the purposes of subsection (4), the carbon charge component

of an amount of levy is so much of that amount as is equal to the

amount worked out using the following formula:

Number of tonnes

of the carbon

Applicable

dioxide equivalence

charge

of the SGG

�

where:

applicable charge means the charge that was the applicable charge

for the purposes of the application of subsection 3A(5) of the

Ozone Protection and Synthetic Greenhouse Gas (Manufacture

Levy) Act 1995 to the levy.

carbon dioxide equivalence has the same meaning as in the Ozone

Protection and Synthetic Greenhouse Gas (Manufacture Levy) Act

1995.

(6) The regulations may provide for verification by statutory

declaration of statements in applications under subsection (4).

Schedule 1

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Amendments commencing on 1 July 2012

120 Clean Energy (Consequential Amendments) Bill 2011 No. , 2011

Assignment of right to receive refund

(7) The regulations may authorise a licensee to assign a right to

receive a refund under this section.

450A Section 69B

Omit "and the Framework Convention on Climate Change" (wherever

occurring), substitute ", the Framework Convention on Climate Change

and the Kyoto Protocol".

451 At the end of Schedule 1

Add:

Part XI--Sulfur hexafluoride

Substance

Sulfur hexafluoride (SF

)

Renewable Energy (Electricity) Act 2000

451A Section 162

Repeal the section, substitute:

162 Periodic reviews of operation of renewable energy legislation

(1) The Climate Change Authority must conduct reviews of the

following:

(a) the operation of this Act and the scheme constituted by this

Act;

(b) the operation of the regulations;

(Large-scale Generation Shortfall Charge) Act 2000;

(d) the operation of the Renewable Energy (Electricity)

(Small-scale Technology Shortfall Charge) Act 2010;

(e) the diversity of renewable energy access to the scheme

constituted by this Act, to be considered with reference to a

cost benefit analysis of the environmental and economic

impact of that access.

General amendments Schedule 1

Amendments commencing on 1 July 2012 Part 2

Clean Energy (Consequential Amendments) Bill 2011 No. , 2011 121

Public consultation

(2) In conducting a review, the Climate Change Authority must make

provision for public consultation.

Report

(3) The Climate Change Authority must:

(a) give the Minister a report of the review; and

(b) as soon as practicable after giving the report to the Minister,

publish the report on the Climate Change Authority's

website.

(4) The Minister must cause copies of a report under subsection (3) to

be tabled in each House of the Parliament within 15 sitting days of

that House after the review is completed.

First review

(5) The first review under subsection (1) must be completed before the

end of 31 December 2012.

Subsequent reviews

(6) Each subsequent review under subsection (1) must be completed

within 2 years after the deadline for completion of the previous

review.

(7) For the purposes of subsections (4), (5) and (6), a review is

completed when the report of the review is given to the Minister

under subsection (3).

Recommendations

(8) A report of a review under subsection (1) may set out

recommendations to the Commonwealth Government.

(9) In formulating a recommendation that the Commonwealth

Government should take particular action, the Climate Change

Authority must analyse the costs and benefits of that action.

(10) Subsection (9) does not prevent the Climate Change Authority

from taking other matters into account in formulating a

recommendation.

Schedule 1

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122 Clean Energy (Consequential Amendments) Bill 2011 No. , 2011

(11) A recommendation must not be inconsistent with the objects of this

Act.

(12) If a report of a review under subsection (1) sets out one or more

recommendations to the Commonwealth Government, the report

must set out the Climate Change Authority's reasons for those

recommendations.

Government response to recommendations

(13) If a report of a review under subsection (1) sets out one or more

recommendations to the Commonwealth Government:

(a) as soon as practicable after receiving the report, the Minister

must cause to be prepared a statement setting out the

Commonwealth Government's response to each of the

recommendations; and

(b) within 6 months after receiving the report, the Minister must

cause copies of the statement to be tabled in each House of

the Parliament.

(14) The Commonwealth Government's response to the

recommendations may have regard to the views of the following:

(a) the Climate Change Authority;

(b)

the

Regulator;

Division 2--Application and transitional provisions

452 Application--registration and reports under the National

Greenhouse and Energy Reporting Act 2007

(1)

Despite the repeal of section 18 of the National Greenhouse and Energy

Reporting Act 2007 by this Part, that section continues to apply after the

commencement of this item, in relation to an application for

deregistration that was made before the commencement of this item, as

if that repeal had not happened.

(2)

Despite the amendment of paragraph 56(b) of the National Greenhouse

and Energy Reporting Act 2007 made by this Part, that paragraph

continues to apply after the commencement of this item, in relation to a

decision under section 18 of that Act, as if that amendment had not been

made.

General amendments Schedule 1

Amendments commencing on 1 July 2012 Part 2

Clean Energy (Consequential Amendments) Bill 2011 No. , 2011 123

(3)

The amendments of the National Greenhouse and Energy Reporting Act

2007 made by this Part, in so far as they are relevant to determining

whether a controlling corporation's group meets a threshold under

section 13 of that Act for a financial year, apply in relation to a

threshold for:

(a) the financial year beginning on 1 July 2012; or

(b) a later financial year.

(4)

The amendments of the National Greenhouse and Energy Reporting Act

2007 made by this Part, in so far as they relate to reports under

section 19 of that Act, apply in relation to reports for:

(a) the financial year beginning on 1 July 2012; or

(b) a later financial year.

(5)

The amendments of the National Greenhouse and Energy Reporting Act

2007 made by this Part, in so far as they relate to reports under

section 22G of that Act, apply in relation to reports for:

(a) the financial year beginning on 1 July 2012; or

(b) a later financial year.

453 Application--civil penalty orders under the National

Greenhouse and Energy Reporting Act 2007

The amendments of section 31 of the National Greenhouse and Energy

Reporting Act 2007 made by this Part apply in relation to proceedings

instituted after the commencement of this item.

454 Application--liability of executive officers under the

National Greenhouse and Energy Reporting Act 2007

The amendments of sections 47 and 48 of the National Greenhouse and

Energy Reporting Act 2007 made by this Part apply in relation to a

contravention of a civil penalty provision that occurs after the

commencement of this item.

455 Transitional--continuation of Register

The National Greenhouse and Energy Register maintained under

section 16 of the National Greenhouse and Energy Reporting Act 2007

after the commencement of this item is, for all purposes, a continuation

of the Register kept under section 16 of that Act immediately before the

commencement of this item.

Schedule 1

General amendments

Part 2

Amendments commencing on 1 July 2012

124 Clean Energy (Consequential Amendments) Bill 2011 No. , 2011

456 Application--section 13 of the Ozone Protection and

Synthetic Greenhouse Gas Management Act 1989

The amendments of section 13 of the Ozone Protection and Synthetic

Greenhouse Gas Management Act 1989 made by this Part apply in

relation to imports that occur after the commencement of this item.

457 Application--civil penalty orders under the Ozone

Protection and Synthetic Greenhouse Gas Management

Act 1989

The amendments of section 65AC of the Ozone Protection and

Synthetic Greenhouse Gas Management Act 1989 made by this Part

apply to contraventions of civil penalty provisions that occur after the

commencement of this item.

458 Application--section 69 of the Ozone Protection and

Synthetic Greenhouse Gas Management Act 1989

(1)

Subsection 69(1) of the Ozone Protection and Synthetic Greenhouse

Gas Management Act 1989 as amended by this Part applies in relation

to levy for a quarter that begins at or after the commencement of this

item.

(2)

Despite the repeal of subsection 69(1) of the Ozone Protection and

Synthetic Greenhouse Gas Management Act 1989 by this Part, that

subsection continues to apply, in relation to levy for a quarter ending

before the commencement of this item, as if that repeal had not

happened.

459 Transitional--pre-charged equipment licences under the

Ozone Protection and Synthetic Greenhouse Gas

Management Act 1989

Scope

(1)

This item applies to a pre-charged equipment licence that was in force

under the Ozone Protection and Synthetic Greenhouse Gas

Management Act 1989 immediately before the commencement of this

item.

General amendments Schedule 1

Amendments commencing on 1 July 2012 Part 2

Clean Energy (Consequential Amendments) Bill 2011 No. , 2011 125

Effect

(2)

The pre-charged equipment licence has effect, after the commencement

of this item, as if it were an ODS/SGG equipment licence in force under

the Ozone Protection and Synthetic Greenhouse Gas Management Act

1989 as amended by this Act.

460 Transitional--reports under the Ozone Protection and

Synthetic Greenhouse Gas Management Act 1989 for

pre-commencement quarters

Despite the amendments of section 46 of the Ozone Protection and

Synthetic Greenhouse Gas Management Act 1989 made by this Part,

that section continues to apply, in relation to a quarter ending before the

commencement of this item, as if those amendments had not been

made.

461 Transitional--regulations

The Governor-General may make regulations in relation to transitional

matters arising out of the amendments made by this Part.

Schedule 2

Taxation amendments

Part 1

Amendments relating to GST

126 Clean Energy (Consequential Amendments) Bill 2011 No. , 2011

Schedule 2--Taxation amendments

Part 1--Amendments relating to GST

A New Tax System (Goods and Services Tax) Act 1999

1 At the end of Division 38

Add:

Subdivision 38-S--Eligible emissions units

38-590 Eligible emissions units

A supply of an

eligible emissions unit is GST-free.

2 Section 195-1

Insert:

eligible emissions unit has the same meaning as in the Clean

Energy Act 2011.

Taxation amendments Schedule 2

Amendments commencing at the same time as section 3 of the Clean Energy Act 2011

commences Part 2

Clean Energy (Consequential Amendments) Bill 2011 No. , 2011 127

Part 2--Amendments commencing at the same time

as section 3 of the Clean Energy Act 2011

commences

Income Tax Assessment Act 1936

3 Subsection 136AB(2)

Omit "section 70-20", substitute "sections 70-20, 420-20 and 420-30".

Income Tax Assessment Act 1997

4 Section 10-5 (after table item headed "recoupment")

Insert:

registered emissions units

disposal of ............................................................................ 420-25

disposal for a non-commercial purpose.......... ..................... 420-40

difference between opening and closing value of ............... 420-45

5 Section 12-5 (after table item headed "children's income")

Insert:

clean energy

unit shortfall charge ............................................................. 26-18

6 Section 12-5 (after table item headed "regional

headquarters (RHQs)")

Insert:

registered emissions units

expenditure incurred in becoming the holder of ................. 420-15

expenditure incurred in ceasing to hold .............................. 420-42

excess of opening over closing value of.......... .................... 420-45

7 Subsection 20-30(1) (after table item 1.27)

Insert:

1.27A 420-15

registered emissions unit

Schedule 2

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Part 2

Amendments commencing at the same time as section 3 of the Clean Energy

Act 2011 commences

128 Clean Energy (Consequential Amendments) Bill 2011 No. , 2011

8 After section 26-17

Insert:

26-18 Unit shortfall charge--clean energy

You cannot deduct under this Act unit shortfall charge (within the

meaning of the Clean Energy Act 2011).

9 Section 67-23 (after table item 23)

Insert:

24 conservation

tillage

the

tax offset available under

Subdivision 385-J

10 At the end of Subdivision 70-A

Add:

70-12 Registered emissions units

registered emissions unit is not

trading stock.

11 At the end of section 70-30 (before the note)

Add:

(6) Subsection (1) does not apply if:

(a) you start holding an item as

trading stock; and

(b) immediately before you started holding the item as trading

stock, you

held the item as a

registered emissions unit.

12 Section 70-110

Before "If you stop", insert "(1)".

13 At the end of section 70-110 (after example 2, before the

note)

Add:

(2) This section does not apply if:

(a) you stop holding an item as

trading stock; and

(b) immediately after you stopped holding the item as trading

stock, you start to

hold the item as a

registered emissions

unit.

Taxation amendments Schedule 2

Amendments commencing at the same time as section 3 of the Clean Energy Act 2011

commences Part 2

Clean Energy (Consequential Amendments) Bill 2011 No. , 2011 129

14 Section 104-5 (before table item relating to CGT event K2)

Insert:

K1 As the result of

an incoming

international

transfer of a

carbon unit, an

international

emissions unit or

Australian

carbon credit unit

from your foreign

account or your

nominee's foreign

account, you start

to hold the unit as

a registered

emissions unit

[See

section 104-205]

when you start to

hold the unit as a

registered

emissions unit

market value of

unit less its cost

base

reduced cost base

of unit less its

market value

15 Before section 104-210

Insert:

104-205 Incoming international transfer of emissions unit: CGT

event K1

(1)

CGT event K1 happens if:

(a) any of the following conditions is satisfied:

(i)

carbon unit is transferred from your foreign account

(within the meaning of the Clean Energy Act 2011) to

your Registry account (within the meaning of the

Australian National Registry of Emissions Units Act

2011) or your nominee's Registry account (within the

meaning of the Australian National Registry of

Emissions Units Act 2011);

(ii)

carbon unit is transferred from your nominee's

foreign account (within the meaning of the Clean

Energy Act 2011) to your Registry account (within the

meaning of the Australian National Registry of

Emissions Units Act 2011) or your nominee's Registry

Schedule 2

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Act 2011 commences

130 Clean Energy (Consequential Amendments) Bill 2011 No. , 2011

account (within the meaning of the Australian National

Registry of Emissions Units Act 2011);

(iii)

international emissions unit is transferred from your

foreign account (within the meaning of the Australian

National Registry of Emissions Units Act 2011) to your

Registry account (within the meaning of that Act) or

your nominee's Registry account (within the meaning of

that Act);

(iv)

international emissions unit is transferred from your

nominee's foreign account (within the meaning of the

Australian National Registry of Emissions Units Act

2011) to your Registry account (within the meaning of

that Act) or your nominee's Registry account (within

the meaning of that Act);

(v)

Australian carbon credit unit is transferred from

your foreign account (within the meaning of the Carbon

Credits (Carbon Farming Initiative) Act 2011) to your

Registry account (within the meaning of the Australian

National Registry of Emissions Units Act 2011) or your

nominee's Registry account (within the meaning of the

Australian National Registry of Emissions Units Act

2011);

(vi)

Australian carbon credit unit is transferred from

your nominee's foreign account (within the meaning of

the Carbon Credits (Carbon Farming Initiative) Act

2011) to your Registry account (within the meaning of

the Australian National Registry of Emissions Units Act

2011) or your nominee's Registry account (within the

meaning of the Australian National Registry of

Emissions Units Act 2011); and

(b) as a result of the transfer, you start to

hold the unit as a

registered emissions unit; and

trading

stock nor your

revenue asset.

(2) The time of the event is when you start to

hold the unit as a

registered emissions unit.

(3) You make a capital gain if the unit's

market value (just before

you started to

hold the unit as a

registered emissions unit) is more

Taxation amendments Schedule 2

Amendments commencing at the same time as section 3 of the Clean Energy Act 2011

commences Part 2

Clean Energy (Consequential Amendments) Bill 2011 No. , 2011 131

than its

cost base. You make a capital loss if that market value is

less than its

reduced cost base.

15A Section 109-60 (table item 11)

Omit "70-110(b)", substitute "70-110(1)(b)".

15B Section 112-97 (table item 1)

Omit "70-110(b)", substitute "70-110(1)(b)".

16 Section 112-97 (after table item 18)

Insert:

18A

You cease to hold a

registered emissions

unit as the result of an

outgoing international

transfer of an

international emissions

unit

First element of cost

base and reduced cost

base

Section 420-35

17 After section 118-13

Insert:

118-15 Registered emissions units

(1)

capital gain or

capital loss you make from a

registered

emissions unit is disregarded.

(2)

capital gain or

capital loss you make from a right to receive a

free carbon unit is disregarded.

(3)

capital gain or

capital loss you make from a right to receive an

Australian carbon credit unit is disregarded.

18 Subsection 122-25(2) (paragraph (d) of the cell at table

item 1, column headed "This Subdivision does not

apply to:")

Omit "creation", substitute "creation; or".

19 Subsection 122-25(2) (at the end of the cell at table item 1,

column headed "This Subdivision does not apply to:")

Add:

Schedule 2

Taxation amendments

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Amendments commencing at the same time as section 3 of the Clean Energy

Act 2011 commences

132 Clean Energy (Consequential Amendments) Bill 2011 No. , 2011

(e) an asset that becomes a

registered

emissions unit

held by the company

just after the

disposal or creation

20 Subsection 122-25(2) (paragraph (c) of the cell at table

item 2, column headed "This Subdivision does not

apply to:")

Omit "disposed of it)", substitute "disposed of it); or".

21 Subsection 122-25(2) (at the end of the cell at table item 2,

column headed "This Subdivision does not apply to:")

Add:

(d) an asset that becomes a

registered

emissions unit

held by the company

just after the

disposal or creation

(unless it was a registered emissions

unit held by you when you disposed of

it)

22 At the end of subsection 122-25(3)

Add:

; or (d) a

registered emissions unit.

23 At the end of section 124-75

Add:

(6) The other asset cannot become a

registered emissions unit

held

by you just after you

acquire it.

23A At the end of subsection 124-80(2)

Add "nor can it be a

registered emissions unit".

24 Subsection 126-50(2)

Omit all the words after "not", substitute:

be:

(a)

trading stock of the recipient company just after the time of

the trigger event; or

(b)

registered emissions unit

held by the recipient company

just after the time of the trigger event.

Taxation amendments Schedule 2

Amendments commencing at the same time as section 3 of the Clean Energy Act 2011

commences Part 2

Clean Energy (Consequential Amendments) Bill 2011 No. , 2011 133

25 After subsection 126-50(3)

Insert:

(3A)

If:

(a) the roll-over asset is an option referred to in Division 134;

and

(b) the recipient company

acquires another

CGT asset by

exercising the option;

the other asset cannot become a

registered emissions unit

held by

the recipient company just after the recipient company acquired it.

26 At the end of Subdivision 230-H

Add:

230-481 Registered emissions units

registered emissions unit is exempt from this Division.

27 At the end of Division 385

Add:

Subdivision 385-J--Refundable tax offset for conservation

tillage

385-175 Refundable tax offset for conservation tillage

(1) You are entitled to a

tax offset under this section (the

conservation tillage offset) for an income year in respect of a

depreciating asset if:

(a) the asset is an

eligible no-till seeder; and

(b) the income year is:

(i) the 2012-13 income year; or

(ii) the 2013-14 income year; or

(iii) the 2014-15 income year; and

(i) start to use the asset to carry on a

primary production

business (without previously having the asset

installed

ready for use); or

Schedule 2

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Amendments commencing at the same time as section 3 of the Clean Energy

Act 2011 commences

134 Clean Energy (Consequential Amendments) Bill 2011 No. , 2011

(ii) have the asset installed ready for use to carry on a

primary production business; and

(d) at the time mentioned in paragraph (c), you

hold the asset;

and

(e) the time mentioned in paragraph (c) is not:

(i) before 1 July 2012; or

(ii) after 30 June 2015; and

(f)

the

Agriculture Secretary has issued a Research

Participation Certificate to you under section 385-190 for the

income year; and

(g) you claim the offset in your

income tax return for the

income year.

Note:

The conservation tillage offset is a refundable tax offset: see

section 67-23.

(2) You are not entitled to the conservation tillage offset if the

depreciating asset has, at any time before the time mentioned in

paragraph (1)(c), been used, or

installed ready for use, by:

(a)

you;

(b) any other entity.

385-180 Amount of the conservation tillage offset

The amount of the conservation tillage offset is 15% of the

cost of

the

depreciating asset.

385-185 Application for Research Participation Certificate

Application

(1) An entity may apply to the

Agriculture Secretary for the issue of a

Research Participation Certificate to the entity for an income year

under section 385-190.

Form of application

(2) The application must:

(a) be in writing; and

(b) be in a form approved, in writing, by the

Agriculture

Secretary.

Taxation amendments Schedule 2

Amendments commencing at the same time as section 3 of the Clean Energy Act 2011

commences Part 2

Clean Energy (Consequential Amendments) Bill 2011 No. , 2011 135

385-190 Issue of Research Participation Certificate

(1)

The

Agriculture Secretary must issue a written certificate to an

entity for an income year if:

(a) the entity has made an application under section 385-185 in

relation to the income year; and

(b) the Agriculture Secretary is satisfied that the entity has, at

any time during the income year, completed a conservation

tillage survey; and

(i) before 1 July 2012; or

(ii) after 30 June 2015.

(2) A certificate under this section is to be known as a Research

Participation Certificate.

(3) For the purposes of this section, a conservation tillage survey is a

survey:

(a) conducted by the

Agriculture Secretary; and

(b) that relates to:

(i) farming practices; and

(ii)

climate

change.

(4) For the purposes of this section, an entity completes a conservation

tillage survey if the entity:

(a) fills up and supplies, in accordance with the instructions set

out in the relevant survey form, the information specified in

the survey form; and

(b) gives the filled-up survey form to a person specified in the

instructions.

385-195 Notice of refusal to issue Research Participation Certificate

If:

(a) an entity makes an application under section 385-185 for the

issue of a Research Participation Certificate to the entity for

an income year; and

(b)

the

Agriculture Secretary decides not to issue a Research

Participation Certificate under section 385-190 to the

applicant for the income year;

Schedule 2

Taxation amendments

Part 2

Amendments commencing at the same time as section 3 of the Clean Energy

Act 2011 commences

136 Clean Energy (Consequential Amendments) Bill 2011 No. , 2011

the Agriculture Secretary must give the applicant written notice of

the decision (including reasons for the decision).

385-200 Revocation of Research Participation Certificate

(1)

The

Agriculture Secretary may revoke a Research Participation

Certificate issued to an entity under section 385-190 if the

Agriculture Secretary is satisfied that the issue of the certificate

was obtained by fraud or serious misrepresentation.

(2)

the

Agriculture Secretary revokes a Research Participation

Certificate under subsection (1), the Agriculture Secretary must

give the entity to whom the certificate was issued written notice of

the revocation (including reasons for the decision to revoke the

certificate).

(3) If a certificate is revoked under subsection (1), it is taken, for the

purposes of this Subdivision, never to have been issued.

Note:

This means that if an assessment of an entity's income tax is issued on

the basis that the entity is entitled to a conservation tillage offset and

the Research Participation Certificate is then revoked, the assessment

will be amended to take account of the fact that the entity was never

entitled to conservation tillage offset: see section 385-220.

(4) Subsection (3) does not apply for the purposes of:

(a) the operation of this section or section 385-210; or

(b) a review by a court or the

AAT of the decision to revoke the

Research Participation Certificate.

385-205 Notification relating to Research Participation Certificate

(1)

The

Agriculture Secretary must:

(a) give the Commissioner written notice of the issue of a

Research Participation Certificate to an entity; and

(b) do so within 30 days after issuing the certificate.

(2)

The

Agriculture Secretary must:

(a) give the Commissioner written notice of the revocation of a

Research Participation Certificate issued to an entity; and

(b) do so within 30 days after revoking the certificate.

(3) A notice under subsection (1) or (2) must specify:

Taxation amendments Schedule 2

Amendments commencing at the same time as section 3 of the Clean Energy Act 2011

commences Part 2

Clean Energy (Consequential Amendments) Bill 2011 No. , 2011 137

(a) the income year to which the Research Participation

Certificate relates; and

(b) the date of issue of the Research Participation Certificate; and

(d) if the entity has an

ABN--the ABN; and

(e) such other matters (if any) as the

Agriculture Secretary

considers should be reported to the Commissioner.

(4) A notice under subsection (1) or (2) must be accompanied by a

copy of the Research Participation Certificate concerned.

385-210 Notice of decision or determination

(1) This section applies to a notice of a decision given under

section 385-195 (refusal to issue a Research Participation

Certificate) or 385-200 (revocation of a Research Participation

Certificate).

(2) The notice of the decision or determination is to include the

statements set out in subsections (3) and (4).

(3) There must be a statement to the effect that, subject to the

Administrative Appeals Tribunal Act 1975, an application may be

made to the

AAT, by (or on behalf of) any entity whose interests

are affected by the decision or determination, for review of the

decision or determination.

(4) There must also be a statement to the effect that a request may be

made under section 28 of the Administrative Appeals Tribunal Act

1975 by (or on behalf of) such an entity for a statement:

(a) setting out the findings on material questions of fact; and

(b) referring to the evidence or other material on which those

findings were based; and

except where subsection 28(4) of that Act applies.

(5)

the

Agriculture Secretary fails to comply with subsection (3) or

(4), that failure does not affect the validity of the decision or

determination.

Schedule 2

Taxation amendments

Part 2

Amendments commencing at the same time as section 3 of the Clean Energy

Act 2011 commences

138 Clean Energy (Consequential Amendments) Bill 2011 No. , 2011

385-215 Review of decisions by the Administrative Appeals Tribunal

Applications may be made to the

AAT for review of:

(a) a decision made by the

Agriculture Secretary to refuse an

application for a Research Participation Certificate under

section 385-190; or

(b) a decision made by the Agriculture Secretary under

section 385-200 to revoke a Research Participation

Certificate.

385-220 Amendment of assessments

Section 170 of the Income Tax Assessment Act 1936 does not

prevent the amendment of an assessment for the purposes of giving

effect to this Subdivision for an income year if:

(a) a Research Participation Certificate issued to an entity for an

income year is revoked under section 385-200 after the time

the entity lodged its

income tax return for the income year;

and

(b) the amendment is made at any time during the period of 4

years starting immediately after the revocation of the

Research Participation Certificate.

Note:

Section 170 of that Act specifies the periods within which assessments

may be amended.

385-225 Evidentiary certificate

(1) If requested to do so by the Commissioner, the

Agriculture

Secretary may, by writing, certify that a specified asset is an

eligible no-till seeder.

(2) In any proceedings arising out of this Subdivision, a certificate

under subsection (1) is prima facie evidence of the matter certified.

(3) A document purporting to be a certificate under subsection (1)

must, unless the contrary is established, be taken to be such a

certificate and to have been properly given.

385-230 Delegation by Agriculture Secretary

The

Agriculture Secretary may, by writing, delegate any or all of

his or her functions and powers under this Subdivision to an SES

Taxation amendments Schedule 2

Amendments commencing at the same time as section 3 of the Clean Energy Act 2011

commences Part 2

Clean Energy (Consequential Amendments) Bill 2011 No. , 2011 139

employee, or acting SES employee, in the

Agriculture

Department.

Note: The

expressions

SES employee and acting SES employee are defined

in the Acts Interpretation Act 1901.

385-235 Eligible no-till seeder

eligible no-till seeder is a no-till seeder (comprising the

combination of cart and tool) that is:

(a) a tine machine fitted with minimum tillage points designed to

achieve minimum soil disturbance and less than full cut-out;

(b) a disc opener with single, double or triple disc blades

designed to achieve minimum soil disturbance and less than

full cut-out; or

(i) single, double or triple disc blades designed to achieve

minimum soil disturbance and less than full cut-out; and

(ii) minimum tillage points designed to achieve minimum

soil disturbance and less than full cut-out; or

(d) a disc/blade hybrid machine fitted with:

(i) single, double or triple disc blades designed to achieve

minimum soil disturbance and less than full cut-out; and

(ii) blades designed to achieve minimum soil disturbance

and less than full cut-out.

For the purposes of paragraph (a) and subparagraph (c)(ii), each of

the following points are taken to be minimum tillage points

designed to achieve minimum soil disturbance and less than full

cut-out:

(e)

narrow

points;

(f)

knife

points;

(g) inverted "T" points.

28 After Part 3-45

Insert:

Schedule 2

Taxation amendments

Part 2

Amendments commencing at the same time as section 3 of the Clean Energy

Act 2011 commences

140 Clean Energy (Consequential Amendments) Bill 2011 No. , 2011

Part 3-50--Climate change

Division 420--Registered emissions units

Table of Subdivisions

Guide to Division 420

420-A Registered emissions units

420-B Acquiring registered emissions units

420-C Disposing of registered emissions units etc.

420-D Accounting for registered emissions units you hold at the start

or end of the income year

420-E Exclusivity of Division

Guide to Division 420

420-1 What this Division is about

This Division deals with amounts you can deduct, and amounts

included in your assessable income, because of these situations:

�

you acquire a registered emissions unit;

�

you hold a registered emissions unit at the start or the end of

the income year;

�

you dispose of a registered emissions unit.

Table of sections

420-5

The 4 key features of tax accounting for registered emissions units

420-5 The 4 key features of tax accounting for registered emissions

units

The purpose of income tax accounting for registered emissions

units is to produce the same tax treatment, irrespective of your

purpose in acquiring or holding the registered emissions units.

There are 4 key features:

Taxation amendments Schedule 2

Amendments commencing at the same time as section 3 of the Clean Energy Act 2011

commences Part 2

Clean Energy (Consequential Amendments) Bill 2011 No. , 2011 141

(1) You bring your gross expenditure and gross proceeds to account,

not your net profits and losses on disposal of a registered emissions

unit.

(2) The gross expenditure is deductible.

(3) The gross proceeds are assessable income.

(4) You must bring to account any difference between the value of

your registered emissions units held at the start and at the end of

the income year. This is done in such a way that:

(a) any increase in value is included in assessable income; and

(b) any decrease in value is a deduction.

Subdivision 420-A--Registered emissions units

Table of sections

420-10 Meaning

registered emissions unit

420-12 Meaning

hold a registered emissions unit

420-10 Meaning of registered emissions unit

A registered emissions unit is:

(a)

carbon unit; or

(b)

Kyoto unit; or

(c)

prescribed international unit; or

(d)

Australian carbon credit unit;

for which there is an entry in a Registry account (within the

meaning of the Australian National Registry of Emissions Units

Act 2011).

420-12 Meaning of hold a registered emissions unit

(1)

You

hold a

registered emissions unit if you are the entity in whose

Registry account (within the meaning of the Australian National

Registry of Emissions Units Act 2011) there is an entry for the unit.

(2) However, if the entity (the nominee entity) in whose Registry

account (within the meaning of the Australian National Registry of

Emissions Units Act 2011) there is an entry for a

registered

emissions unit holds the unit as nominee for another entity:

Schedule 2

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Amendments commencing at the same time as section 3 of the Clean Energy

Act 2011 commences

142 Clean Energy (Consequential Amendments) Bill 2011 No. , 2011

(a) the other entity is taken to hold the unit; and

(b) the nominee entity is taken not to hold the unit.

Subdivision 420-B--Acquiring registered emissions units

Table of sections

420-15

What you can deduct

420-20

Non-arm's length transactions and transactions with associates

420-21

Incoming international transfers of emissions units

420-22

Becoming taxable in Australia on the proceeds of sale of registered

emissions units

420-15 What you can deduct

(1) You can deduct expenditure to the extent that you incur it in

becoming the

holder of a

registered emissions unit.

Note:

A carbon unit is an example of a registered emissions unit. You can

become the holder of a carbon unit as a result of the unit being issued

to you under the Clean Energy Act 2011 or as a result of your

acquisition of the unit from another entity.

Timing

(2) You deduct the expenditure in the income year in which you start

hold the

registered emissions unit.

Free carbon units

(3) You cannot deduct under this section expenditure you incur in

becoming the

holder of a

carbon unit issued to you in accordance

with:

(a) the Jobs and Competitiveness Program (within the meaning

of the Clean Energy Act 2011); or

(b) Part 8 (coal-fired electricity generation) of that Act.

Australian carbon credit units

(4) You cannot deduct under this section expenditure you incur in

becoming the

holder of an

Australian carbon credit unit issued to

you in accordance with the Carbon Credits (Carbon Farming

Initiative) Act 2011 unless you incur the expenditure in preparing

or lodging:

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(a) an application for a certificate of entitlement (within the

meaning of that Act); or

(b) an offsets report (within the meaning of that Act).

No deduction if sale proceeds would not be assessable

(5) You cannot deduct under this section expenditure you incur in

becoming the

holder of a

registered emissions unit if, assuming

that you had sold the unit to someone else immediately after you

started to

hold the unit, the proceeds of the sale would not have

been included in your assessable income under section 420-25.

Note: Under

the

International Tax Agreements Act 1953, for some foreign

residents, the proceeds of the sale of a registered emissions unit are

not assessable income in Australia.

420-20 Non-arm's length transactions and transactions with

associates

(1)

If:

(a) an entity becomes the

holder of a

registered emissions unit;

and

(b)

either:

(i) the entity and the previous holder of the unit did not

deal with each other at arm's length; or

(ii) the previous holder is the entity's

associate; and

market value of the unit for becoming the holder of the unit;

the entity is treated as if:

(d) the entity had incurred expenditure in becoming the holder of

the unit; and

(e) the amount of the expenditure were equal to that market

value.

(2) This section does not apply if a

registered emissions unit

held by

an individual just before the individual's death:

(a) devolves to the individual's

legal personal representative; or

(b)

passes to a beneficiary in the individual's estate.

(3) This section does not apply to:

(a) the issue of a

carbon unit under the Clean Energy Act 2011;

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(b) the issue of an

Australian carbon credit unit under the

Carbon Credits (Carbon Farming Initiative) Act 2011.

Note:

In the application of Division 13 of Part III of the Income Tax

Assessment Act 1936 (about international transfer-pricing

arrangements), this section is disregarded--see subsection 136AB(2)

of the Income Tax Assessment Act 1936.

420-21 Incoming international transfers of emissions units

Unit held as trading stock or as a revenue asset

(1)

If:

(a) any of the following conditions is satisfied:

(i)

carbon unit is transferred from your foreign account

(within the meaning of the Clean Energy Act 2011) to

your Registry account (within the meaning of the

Australian National Registry of Emissions Units Act

2011) or your nominee's Registry account (within the

meaning of the Australian National Registry of

Emissions Units Act 2011);

(ii) a carbon unit is transferred from your nominee's foreign

account (within the meaning of the Clean Energy Act

2011) to your Registry account (within the meaning of

the Australian National Registry of Emissions Units Act

2011) or your nominee's Registry account (within the

meaning of the Australian National Registry of

Emissions Units Act 2011);

(iii)

international emissions unit is transferred from your

foreign account (within the meaning of the Australian

National Registry of Emissions Units Act 2011) to your

Registry account (within the meaning of that Act) or

your nominee's Registry account (within the meaning of

that Act);

(iv) an international emissions unit is transferred from your

nominee's foreign account (within the meaning of the

Australian National Registry of Emissions Units Act

2011) to your Registry account (within the meaning of

that Act) or your nominee's Registry account (within

the meaning of that Act);

(v)

Australian carbon credit unit is transferred from

your foreign account (within the meaning of the Carbon

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Credits (Carbon Farming Initiative) Act 2011) to your

Registry account (within the meaning of the Australian

National Registry of Emissions Units Act 2011) or your

nominee's Registry account (within the meaning of the

Australian National Registry of Emissions Units Act

2011);

(vi) an Australian carbon credit unit is transferred from your

nominee's foreign account (within the meaning of the

Carbon Credits (Carbon Farming Initiative) Act 2011)

to your Registry account (within the meaning of the

Australian National Registry of Emissions Units Act

2011) or your nominee's Registry account (within the

meaning of the Australian National Registry of

Emissions Units Act 2011); and

(b) as a result of the transfer, you start to

hold the unit as a

registered emissions unit; and

trading stock or

revenue asset;

you are treated as if:

(d) just before the transfer, you had sold the unit to someone else

for its

cost; and

(e) you had, immediately after the sale, bought it back as a

registered emissions unit for the same amount.

Example: An Australian resident company carries on a business of trading in

emissions units. The units are trading stock. The company owns

10,000 emission reduction units (a type of international emissions

unit) that are registered in New Zealand. 5,000 of those emission

reduction units are transferred from the company's New Zealand

registry account to the company's Australian registry account.

The company is treated as having sold each unit to someone else at its

cost just before it became a registered emissions unit. As the unit was

previously held as trading stock, the unit ceases to be trading stock

(section 70-12). The cost of the unit just before it became a registered

emissions unit is included in the company's assessable income.

The company is also treated as having bought 5,000 registered

emissions units for the same amount. The company is entitled to a

deduction for that amount (section 420-15).

Unit held otherwise than as trading stock or as a revenue asset

(2)

If:

(a) any of the following conditions is satisfied:

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(i)

carbon unit is transferred from your foreign account

(within the meaning of the Clean Energy Act 2011) to

your Registry account (within the meaning of the

Australian National Registry of Emissions Units Act

2011) or your nominee's Registry account (within the

meaning of the Australian National Registry of

Emissions Units Act 2011);

(ii) a carbon unit is transferred from your nominee's foreign

account (within the meaning of the Clean Energy Act

2011) to your Registry account (within the meaning of

the Australian National Registry of Emissions Units Act

2011) or your nominee's Registry account (within the

meaning of the Australian National Registry of

Emissions Units Act 2011);

(iii)

international emissions unit is transferred from your

foreign account (within the meaning of the Australian

National Registry of Emissions Units Act 2011) to your

Registry account (within the meaning of that Act) or

your nominee's Registry account (within the meaning of

that Act);

(iv) an international emissions unit is transferred from your

nominee's foreign account (within the meaning of the

Australian National Registry of Emissions Units Act

2011) to your Registry account (within the meaning of

that Act) or your nominee's Registry account (within

the meaning of that Act);

(v)

Australian carbon credit unit is transferred from

your foreign account (within the meaning of the Carbon

Credits (Carbon Farming Initiative) Act 2011) to your

Registry account (within the meaning of the Australian

National Registry of Emissions Units Act 2011) or your

nominee's Registry account (within the meaning of the

Australian National Registry of Emissions Units Act

2011);

(vi) an Australian carbon credit unit is transferred from your

nominee's foreign account (within the meaning of the

Carbon Credits (Carbon Farming Initiative) Act 2011)

to your Registry account (within the meaning of the

Australian National Registry of Emissions Units Act

2011) or your nominee's Registry account (within the

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meaning of the Australian National Registry of

Emissions Units Act 2011); and

(b) as a result of the transfer, you start to

hold the unit as a

registered emissions unit; and

trading

stock nor your

revenue asset;

you are treated as if:

(d) just before the transfer, you had sold the unit to someone else

for its

market value just before the transfer; and

(e) you had, immediately after the sale, bought it back as a

registered emissions unit for the same amount.

420-22 Becoming taxable in Australia on the proceeds of sale of

registered emissions units

If:

(a) you start to

hold a

registered emissions unit at a particular

time; and

(b) assuming that you had sold the unit to someone else

immediately after you started to hold the unit, the proceeds of

the sale would not have been included in your assessable

income under section 420-25; and

commencement time), where the following conditions are

satisfied:

(i) assuming that you had sold the unit to someone else

immediately before the taxable status commencement

time, the proceeds of the sale would not have been

included in your assessable income under

section 420-25;

(ii) assuming that you had sold the unit to someone else at

the taxable status commencement time, the proceeds of

the sale would have been included in your assessable

income under section 420-25;

you are treated as if:

(d) immediately after the taxable status commencement time,

you had bought the unit from someone else for its

market

value; and

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(e) you had started to hold the unit immediately after the taxable

status commencement time instead of at the time mentioned

in paragraph (a).

Note: Under

the

International Tax Agreements Act 1953, for some foreign

residents, the proceeds of the sale of a registered emissions unit are

not assessable income in Australia.

Subdivision 420-C--Disposing of registered emissions units etc.

Table of sections

420-25

Assessable income on disposal of registered emissions units

420-30

Non-arm's length transactions and transactions with associates

420-35

Outgoing international transfers of emissions units

420-40

Disposal of registered emissions units for a purpose other than gaining

assessable income

420-41

Ceasing to be taxable in Australia on the proceeds of sale of registered

emissions units

420-42

Deduction for expenses incurred in ceasing to hold a registered emissions

unit

420-43

Deduction for charge imposed on the surrender of an eligible international

emissions unit

420-25 Assessable income on disposal of registered emissions units

(1) Your assessable income includes an amount that you are entitled to

receive because you cease to

hold a

registered emissions unit.

Timing

(2) The amount is included in your assessable income for the income

year in which you cease to

hold the unit.

Source

(3) An amount included in your assessable income under

subsection (1) is taken, for the purposes of the

income tax laws, to

have a source in Australia.

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420-30 Non-arm's length transactions and transactions with

associates

If:

(a) an entity (the transferor) ceases to

hold a

registered

emissions unit; and

(b) the cessation is because of the transfer of the unit to:

(i) a Registry account (within the meaning of the

Australian National Registry of Emissions Units Act

2011); or

(ii) a foreign account (within the meaning of that Act);

kept by another entity (the transferee); and

(c)

either:

(i) the transferor and the transferee did not deal with each

other at arm's length; or

(ii) the transferee is the transferor's

associate; and

(d) the transferee did not pay or give consideration equal to the

market value of the unit for the transfer of the unit;

the transferor is treated as if the transferor were entitled to receive

an amount equal to that market value because the transferor ceased

to be the holder of the unit.

Note:

In the application of Division 13 of Part III of the Income Tax

Assessment Act 1936 (about international transfer-pricing

arrangements), this section is disregarded--see subsection 136AB(2)

of the Income Tax Assessment Act 1936.

420-35 Outgoing international transfers of emissions units

If:

(a)

you

stop

holding a

registered emissions unit; and

(b) you do so as a result of the transfer of the unit to:

(i) if the unit is a

carbon unit--your foreign account

(within the meaning of the Clean Energy Act 2011) or

your nominee's foreign account (within the meaning of

that Act); or

(ii) if the unit is an

international emissions unit--your

foreign account (within the meaning of the Australian

National Registry of Emissions Units Act 2011) or your

nominee's foreign account (within the meaning of that

Act); or

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(iii) if the unit is an

Australian carbon credit unit--your

foreign account (within the meaning of the Carbon

Credits (Carbon Farming Initiative) Act 2011) or your

nominee's foreign account (within the meaning of that

Act);

you are treated as if:

for its

market value just before the transfer; and

(d) you had, immediately after the sale, bought it back for the

same amount.

Example: An Australian resident company carries on a business of trading in

emission units. The company owns 10,000 emission reduction units (a

type of international emissions unit) that are registered in Australia.

5,000 of those units are transferred from the company's Australian

registry account to the company's New Zealand registry account.

The company is treated as having sold each unit to someone else at its

market value just before it stopped being a registered emissions unit.

As the unit was a registered emissions unit, the market value is

included in the company's assessable income (section 420-25).

The company is also treated as having bought 5,000 emission

reduction units for the same amount. As those units are trading stock,

the company may be able to deduct that amount under section 8-1.

420-40 Disposal of registered emissions units for a purpose other

than gaining assessable income

(1)

If:

(a) an entity (the first entity) incurs expenditure in:

(i)

becoming

the

holder of a

registered emissions unit; or

(ii) ceasing to hold a registered emissions unit; and

(b) the first entity has deducted or can deduct the expenditure

under section 420-15 or 420-42; and

year; and

(d) the cessation is neither:

(i) in gaining or producing the first entity's assessable

income; nor

(ii) in carrying on a

business for the purpose of gaining or

producing the first entity's assessable income; and

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(e) section 420-30 (non-arm's length transactions and

transactions with associates) did not apply to the first entity

ceasing to hold the unit;

the first entity's assessable income for that income year includes an

amount equal to the amount the first entity has deducted or can

deduct.

Death

(2)

If:

(a) the first entity is an individual; and

(b) the cessation is because of the first entity's death; and

(c)

the

registered emissions unit devolves to the first entity's

legal personal representative;

then:

(d) the first entity's legal personal representative is treated as

having bought the unit for the amount included in the first

entity's assessable income under subsection (1); and

(e) if the unit

passes to a beneficiary in the first entity's estate:

(i) the first entity's legal personal representative is treated

as having disposed of the unit for the amount included

in the first entity's assessable income under

subsection (1); and

(ii) the beneficiary is treated as having bought the unit for

the amount included in the first entity's assessable

income under subsection (1).

(3)

If:

(a) the first entity is an individual; and

(b) the cessation is because of the first entity's death; and

(c)

the

registered emissions unit

passes to a beneficiary in the

first entity's estate without devolving to the first entity's

legal personal representative;

the beneficiary is treated as having bought the unit for the amount

included in the first entity's assessable income under

subsection (1).

Transfer--treatment of acquirer

(4)

If:

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(a) the cessation is because of the transfer of the unit to another

entity; and

(b) neither subsection (2) nor (3) applies;

the other entity is treated as having bought the unit for the amount

included in the first entity's assessable income under

subsection (1).

(5) If subsection (4) applies to the transfer of the unit to another entity:

(a) the first entity must inform the other entity that, as a result of

subsection (4) applying, the other entity is treated as having

bought the unit for a particular amount; and

(b) the first entity must do so:

(i) at, or as soon as practicable after, the time of the

transfer; or

(ii) by a later time allowed by the Commissioner.

Source

(6) An amount included in the first entity's assessable income under

subsection (1) is taken, for the purposes of the

income tax laws, to

have a source in Australia.

420-41 Ceasing to be taxable in Australia on the proceeds of sale of

registered emissions units

If:

(a) you start to

hold a

registered emissions unit; and

(b) assuming that you had sold the unit to someone else

immediately after you started to hold the unit, the proceeds of

sale would have been included in your assessable income

under section 420-25; and

cessation time), where the following conditions are satisfied:

(i) assuming that you had sold the unit to someone else

immediately before the taxable status cessation time, the

proceeds of the sale would have been included in your

assessable income under section 420-25;

(ii) assuming that you had sold the unit to someone else at

the taxable status cessation time, the proceeds of sale

would not have been included in your assessable income

under section 420-25;

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you are treated as if:

(d) just before the taxable status cessation time, you had sold the

unit to someone else for its

market value; and

(e) you had, at the taxable status cessation time, bought it back

for the same amount.

Note: Under

the

International Tax Agreements Act 1953, for some foreign

residents, the proceeds of the sale of a registered emissions unit are

not assessable income in Australia.

420-42 Deduction for expenses incurred in ceasing to hold a

registered emissions unit

(1) You can deduct expenditure to the extent that you incur it in

ceasing to

hold a

registered emissions unit.

Timing

(2) You deduct the expenditure in the income year in which you cease

hold the

registered emissions unit.

420-43 Deduction for charge imposed on the surrender of an eligible

international emissions unit

(1) You can deduct an amount of charge imposed by the Clean Energy

(International Unit Surrender Charge) Act 2011 on the surrender

by you of an eligible international emissions unit (within the

meaning of the Australian National Registry of Emissions Units

Act 2011).

Timing

(2) You deduct the amount in the income year in which you pay the

amount.

Subdivision 420-D--Accounting for registered emissions units

you hold at the start or end of the income year

Table of sections

420-45

You include the value of your registered emissions units in working out

your assessable income and deductions

420-50

Value of registered emissions units at start of income year

420-51 Valuation

methods

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420-52

FIFO cost method of working out the value of units

420-53

Actual cost method of working out the value of units

420-54

Market value method of working out the value of units

420-55

Valuation method for first income year at the end of which you held

registered emissions units

420-57

Valuation method for later income years at the end of which you held

registered emissions units

420-58

Value of registered emissions units at end of income year--certain free

carbon units

420-60

Cost of registered emissions units

420-45 You include the value of your registered emissions units in

working out your assessable income and deductions

(1)

You

compare:

(a)

the

value of all

registered emissions units you

held at the

start of the income year; and

(b) the value of all registered emissions units you held at the end

of the income year.

Increase in value is included in assessable income

(2) Your assessable income includes any excess of the

value at the

end of the income year over the value at the start of the income

year.

Decrease in value is a deduction

(3) On the other hand, you can deduct any excess of the

value at the

start of the income year over the value at the end of the income

year.

Source

(4) An amount included in your assessable income under

subsection (2) is taken, for the purposes of the

income tax laws, to

have a source in Australia.

Disregard value of unit if sale proceeds would not be assessable

(5) For the purposes of this Subdivision, disregard the

value of a

registered emissions unit you

held at the end of the income year

if, assuming that you had sold the unit to someone else

immediately after you started to hold the unit, the proceeds of the

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sale would not have been included in your assessable income under

section 420-25.

Note: Under

the

International Tax Agreements Act 1953, for some foreign

residents, the proceeds of the sale of a registered emissions unit are

not assessable income in Australia.

420-50 Value of registered emissions units at start of income year

(1)

The

value of a

registered emissions unit you

held at the start of

an income year is the same amount at which it was taken into

account under this Subdivision at the end of the last income year.

(2)

The

value of the unit is a nil amount if the unit was not taken into

account under this Subdivision at the end of the last income year.

420-51 Valuation methods

(1)

The

value of a

registered emissions unit you

held at the end of an

income year is worked out using one of the following methods:

(a)

the

FIFO cost method;

(b)

the

actual cost method;

(c)

the

market value method.

Sections 420-55 and 420-57 tell you which method applies.

(2) This section has effect subject to section 420-58 (certain free

carbon units).

420-52 FIFO cost method of working out the value of units

The

FIFO cost method for working out the

value of the

registered emissions units you

held at the end of an income year

means that the value of the units is the

cost of the registered

emissions units, and, for the purposes of the application of this

Subdivision to you for the income year:

(a) if any of the registered emissions units are:

(i)

carbon units that have a

vintage year that is the same

as, or earlier than, the financial year to which the

income year relates; or

(ii) eligible international emissions units (within the

meaning of the Australian National Registry of

Emissions Units Act 2011); or

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(iii)

Australian carbon credit units;

you must account for those units on a first-in first-out basis;

and

(b)

if:

(i) any of the registered emissions units are carbon units

that have the same vintage year; and

(ii) that vintage year is later than the financial year to which

the income year relates;

you must account for those units on a first-in first-out basis;

and

Kyoto units that

are not eligible international emissions units (within the

meaning of the Australian National Registry of Emissions

Units Act 2011)--you must account for those units on a

first-in first-out basis.

420-53 Actual cost method of working out the value of units

The

actual cost method for working out the value of the

registered

emissions units you

held at the end of the income year means that

the value of the units is the

cost of the units, and, for the purposes

of the application of this Subdivision to you for the income year,

you must not account for any of those units on a first-in first-out

basis.

420-54 Market value method of working out the value of units

The

market value method for working out the value of the

registered emissions units you

held at the end of the income year

means that the value of the units is the

market value of the units at

the end of the income year.

420-55 Valuation method for first income year at the end of which

you held registered emissions units

Scope

(1) This section applies if:

(a)

you

held one or more

registered emissions units at the end

of an income year; and

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(b) the income year is the first income year at the end of which

you held one or more registered emissions units.

Choice of method

(2) You may choose one of the following methods:

(a)

the

FIFO cost method;

(b)

the

actual cost method;

(c)

the

market value method;

for working out the value of the

registered emissions units you

held at the end of the income year.

FIFO cost method applies if no choice made

(3) If you do not make a choice under subsection (2) for the income

year, the value of the

registered emissions units you

held at the

end of the income year is worked out using the

FIFO cost method.

Time for making choice

(4) You must make a choice under subsection (2) before you lodge

your

income tax return for the income year for which you make

the choice.

No revocation of choice

(5) A choice made under subsection (2) cannot be revoked.

Certain free carbon units

(6) This section has effect subject to section 420-58 (certain free

carbon units).

420-57 Valuation method for later income years at the end of which

you held registered emissions units

Scope

(1) This section applies if:

(a)

you

held one or more

registered emissions units at the end

of an income year (the current income year); and

(b) the current income year is not the first income year at the end

of which you held one or more registered emissions units.

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Choice of method

(2) You may choose one of the following methods:

(a)

the

FIFO cost method;

(b)

the

actual cost method;

(c)

the

market value method;

for working out the value of the

registered emissions units you

held at the end of the current income year.

Previous method applies if no choice made

(3) If you do not make a choice under subsection (2) for the current

income year, the value of the

registered emissions units you

held

at the end of the current income year is worked out using the

method that applied to the most recent income year at the end of

which you held one or more registered emissions units.

Limitation on choice--before 2015-16 income year

(4) If the current income year is before the 2015-16 income year, you

must not make a choice under subsection (2) for the current income

year if you have previously made a choice under that subsection

for an earlier income year.

Limitation on choice--2015-16 income year or a later income year

(5) If the current income year is:

(a) the 2015-16 income year; or

(b) a later income year;

you must not make a choice under subsection (2) for the current

income year unless:

income years at the end of which you

held one or more

registered emissions units; and

(d) the method mentioned in paragraph (c) is different from the

method to which your choice for the current income year

relates.

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Clean Energy (Consequential Amendments) Bill 2011 No. , 2011 159

Limitation on choice--change from FIFO cost method to actual

cost method

(6) You must not choose under subsection (2) the

actual cost method

for the current income year if the

FIFO cost method applied for

the most recent income year at the end of which you

held one or

registered emissions units.

Time for making choice

(7) You must make a choice under subsection (2) before you lodge

your

income tax return for the income year for which you make

the choice.

No revocation of choice

(8) A choice made under subsection (2) cannot be revoked.

Certain free carbon units

(9) This section has effect subject to section 420-58 (certain free

carbon units).

420-58 Value of registered emissions units at end of income year--

certain free carbon units

Scope

(1) This section applies to a

carbon unit with a particular

vintage

year if:

(a) it was issued to you in accordance with the Jobs and

Competitiveness Program (within the meaning of the Clean

Energy Act 2011); and

(b)

you

held it throughout the period:

(i) beginning when it was issued to you; and

(ii) ending at the end of an income year that ended before

1 February in the financial year next following the

vintage year.

Value

(2)

The

value of the unit you

held at the end of an income year that

ended during that period is a nil amount.

Schedule 2

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Act 2011 commences

160 Clean Energy (Consequential Amendments) Bill 2011 No. , 2011

(3) For the purposes of:

(a) subsection 420-57(3); and

(b)

paragraph

420-57(5)(c);

the method that applied to a previous income year mentioned in

that subsection or paragraph, as the case may be, is the method that

would have applied if this section had not been enacted.

420-60 Cost of registered emissions units

Free carbon units

(1)

carbon unit was issued to you free of charge under the Clean

Energy Act 2011, the cost of the unit is its

market value

immediately after you began to

hold the unit.

(2) Subsection (1) does not affect the operation of section 420-58.

Australian carbon credit units

(3)

Australian carbon credit unit was issued to you under the

Carbon Credits (Carbon Farming Initiative) Act 2011, the cost of

the unit is its

market value immediately after you began to

hold

the unit.

Other registered emissions units

(4)

registered emissions unit (other than an

Australian carbon

credit unit) was not issued to you free of charge under the Clean

Energy Act 2011, the cost of the unit is the total of the expenditure

that you:

(a) incurred in becoming the

holder of the unit; and

(b) can deduct under section 420-15.

Subdivision 420-E--Exclusivity of Division

Table of sections

420-65

Exclusivity of deductions etc.

420-70

Exclusivity of assessable income etc.

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commences Part 2

Clean Energy (Consequential Amendments) Bill 2011 No. , 2011 161

420-65 Exclusivity of deductions etc.

Expenditure incurred in becoming the holder of a registered

emissions unit

(1) You cannot deduct under any provision of this Act outside this

Division any expenditure to the extent that you incur it in

becoming the

holder of a

registered emissions unit.

(2) To the extent you incur expenditure in becoming the

holder of a

registered emissions unit, the expenditure is not to be taken into

account in working out:

(a) an amount you can deduct; or

(b) an amount included in your assessable income;

under any provision of this Act outside this Division.

Free carbon units

(3) Subsections (1) and (2) do not affect the application of a provision

of this Act outside this Division to expenditure you incur in

becoming the

holder of a

carbon unit issued to you in accordance

with:

(a) the Jobs and Competitiveness Program (within the meaning

of the Clean Energy Act 2011); or

(b) Part 8 (coal-fired electricity generation) of that Act.

Australian carbon credit units

(4) Subsections (1) and (2) do not affect the application of a provision

of this Act outside this Division to expenditure you incur in

becoming the

holder of an

Australian carbon credit unit issued to

you in accordance with the Carbon Credits (Carbon Farming

Initiative) Act 2011 if you do not incur the expenditure in preparing

or lodging:

(a) an application for a certificate of entitlement (within the

meaning of that Act); or

(b) an offsets report (within the meaning of that Act).

(5) Subsections (1) and (2) do not affect the operation of Division 30

(deductions for gifts and contributions).

Schedule 2

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Part 2

Amendments commencing at the same time as section 3 of the Clean Energy

Act 2011 commences

162 Clean Energy (Consequential Amendments) Bill 2011 No. , 2011

Note:

If you make a gift or contribution, Division 30 applies in the normal

way to determine whether you can deduct the amount of the gift or

contribution.

Expenditure incurred in ceasing to hold a registered emissions unit

(6) You cannot deduct under any provision of this Act outside this

Division any expenditure to the extent that you incur it in ceasing

hold a

registered emissions unit.

420-70 Exclusivity of assessable income etc.

(1) An amount that you are entitled to receive because you ceased to

hold a

registered emissions unit is not to be:

(a) included in your assessable income; or

(b) taken into account in working out your assessable income; or

under any provision of this Act outside this Division.

(2) Subsection (1) does not affect the operation of Division 6 so far as

that Division provides for the significance of residence or source

for the assessability of ordinary and statutory income.

Note:

An amount included in your assessable income under this Division

may be ordinary or statutory income for the purposes of Division 6.

Free carbon units

(3) An amount is not to be included in your assessable income under

any provision of this Act outside this Division because a

carbon

unit was issued to you in accordance with:

(a) the Jobs and Competitiveness Program (within the meaning

of the Clean Energy Act 2011); or

(b) Part 8 (coal-fired electricity generation) of that Act.

Note 1:

A capital gain or capital loss you make from a registered emissions

unit is disregarded (subsection 118-15(1)).

Note 2:

A capital gain or capital loss you make from a right to receive a free

carbon unit is disregarded (subsection 118-15(2)).

Australian carbon credit units

(4) An amount is not to be included in your assessable income under

any provision of this Act outside this Division because an

Taxation amendments Schedule 2

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commences Part 2

Clean Energy (Consequential Amendments) Bill 2011 No. , 2011 163

Australian carbon credit unit was issued to you in accordance with

the Carbon Credits (Carbon Farming Initiative) Act 2011.

Note 1:

A capital gain or capital loss you make from a registered emissions

unit is disregarded (subsection 118-15(1)).

Note 2:

A capital gain or capital loss you make from a right to receive an

Australian carbon credit unit is disregarded (subsection 118-15(3)).

29 Subsection 701-10(5) (heading)

Repeal the heading, substitute:

Multiple setting of tax cost for same trading stock or registered

emissions unit

30 Paragraph 701-10(5)(a)

After "

trading stock", insert "or a

registered emissions unit".

31 Paragraph 701-25(2)(a)

Repeal the paragraph, substitute:

(a)

either:

(i) the asset is

trading stock of the

head company; or

(ii) the asset is a

registered emissions unit and an asset of

the head company; and

32 Subsection 701-25(3) (note)

After "trading stock", insert "or registered emissions units".

33 Subsection 701-25(4)

Omit "The asset is taken", substitute "If subparagraph (2)(a)(i) applies,

the asset is taken".

34 At the end of section 701-25 (after the note)

Add:

Setting value of registered emissions unit at tax-neutral amount

(5) If subparagraph (2)(a)(ii) applies, the asset is taken to be an asset

of the

head company at the end of the income year (but not at the

start of the next income year) and the head company's

value for

the asset at that time is taken to be equal to:

Schedule 2

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Act 2011 commences

164 Clean Energy (Consequential Amendments) Bill 2011 No. , 2011

(a) if the asset was

held by the head company at the start of the

income year--the value of the asset at the start of the income

year; or

(b) otherwise--the expenditure incurred by the head company in

becoming the holder of the asset.

35 Subsection 701-35(2)

Repeal the subsection, substitute:

Assets to which section applies

(2) This section applies in relation to an asset if:

(a) the asset is

trading stock of the entity just before it becomes

subsidiary member of the group; or

(b) the asset is:

(i)

registered emissions unit; and

(ii) an asset of the entity;

just before it becomes a subsidiary member of the group.

36 Subsection 701-35(3) (note)

After "trading stock", insert "or registered emissions units".

37 Subsection 701-35(4)

Omit "The

value of the", substitute "If paragraph (2)(a) applies, the

value of the".

38 At the end of section 701-35 (after the note)

Add:

Setting value of registered emissions unit at tax-neutral amount

(5) If paragraph (2)(b) applies, the

value of the

registered emissions

unit at the end of the income year that ends, or, if section 701-30

applies, of the income year that is taken by subsection (3) of that

section to end, when the entity becomes a

subsidiary member is

taken to be equal to:

(a) if the unit was

held by the joining entity at the start of the

income year--the value of the unit at the start of the income

year; or

Taxation amendments Schedule 2

Amendments commencing at the same time as section 3 of the Clean Energy Act 2011

commences Part 2

Clean Energy (Consequential Amendments) Bill 2011 No. , 2011 165

(b) otherwise--the expenditure incurred by the joining entity in

becoming the holder of the unit.

Note:

See also section 701A-7 of the Income Tax (Transitional Provisions)

Act 1997.

39 After subsection 701-55(3)

Insert:

Registered emissions unit provisions

(3A) If Division 420 is to apply in relation to the asset, the expression

means that the Division applies as if the asset were a

registered

emissions unit at the start of the income year in which the

particular time occurs, and its

value at that time were equal to the

asset's

tax cost setting amount.

39A Subsection 701-58(2)

After "(3)", insert "(3A),".

40 After subsection 705-30(1)

Insert:

Registered emissions units

(1A) If an asset of the joining entity is a

registered emissions unit, the

joining entity's terminating value for the unit is equal to:

(a) if the unit was

held by the joining entity at the start of the

income year--the

value of the unit at the start of the income

year; or

(b) otherwise--the expenditure incurred by the joining entity in

becoming the holder of the unit.

41 Section 705-40 (heading)

Repeal the heading, substitute:

705-40 Tax cost setting amount for reset cost base assets held on

revenue account etc.

42 Subsection 705-40(1)

After "

depreciating asset", insert ", a

registered emissions unit".

Schedule 2

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Amendments commencing at the same time as section 3 of the Clean Energy

Act 2011 commences

166 Clean Energy (Consequential Amendments) Bill 2011 No. , 2011

43 Subsection 705-40(2)

After "

depreciating assets", insert ",

registered emissions units".

44 Paragraph 705-40(3)(b)

After "

depreciating asset", insert ", to a

registered emissions unit".

45 Subsection 705-57(1)

After "

depreciating assets", insert ",

registered emissions units".

46 Paragraph 705-57(2)(c)

After "

depreciating asset", insert ", a

registered emissions unit".

47 Subsection 705-163(1)

After "

depreciating assets", insert ",

registered emissions units".

48 Subsection 705-240(1)

After "

depreciating assets", insert ",

registered emissions units".

49 Subsection 713-225(4) (heading)

Repeal the heading, substitute:

Special character of partnership cost setting interest in partnership

asset that is trading stock, a depreciating asset or a registered

emissions unit

50 Subsection 713-225(4)

Omit "or a

depreciating asset", substitute ", a

depreciating asset or a

registered emissions unit".

51 Subsection 715-660(1) (after table item 1)

Insert:

A provision of

Subdivision 420-D that provides

for a choice

Valuing

registered emissions units

51B At the end of paragraph 715-910(3)(b)

Add "and".

51C After paragraph 715-910(3)(b)

Taxation amendments Schedule 2

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commences Part 2

Clean Energy (Consequential Amendments) Bill 2011 No. , 2011 167

Insert:

unit at tax-neutral amount);

51D At the end of paragraph 715-920(3)(b)

Add "and".

51E After paragraph 715-920(3)(b)

Insert:

unit at tax-neutral amount);

52 Section 719-165 (heading)

Repeal the heading, substitute:

719-165 Trading stock value and registered emissions unit value not

set for assets of eligible tier-1 companies

53 At the end of section 719-165

Add:

(3) Subsection 701-35(5) (setting value of registered emissions unit at

tax-neutral amount) does not apply to the assets of the MEC

joining entity if it is an

eligible tier-1 company at the MEC joining

time.

54 Subsection 995-1(1)

Insert:

actual cost method of working out the

value of a

registered

emissions unit has the meaning given by section 420-53.

55 Subsection 995-1(1)

Insert:

Australian carbon credit unit has the same meaning as in the

Carbon Credits (Carbon Farming Initiative) Act 2011.

56 Subsection 995-1(1)

Insert:

Schedule 2

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Amendments commencing at the same time as section 3 of the Clean Energy

Act 2011 commences

168 Clean Energy (Consequential Amendments) Bill 2011 No. , 2011

carbon unit has the same meaning as in the Clean Energy Act

2011.

57 Subsection 995-1(1) (paragraph (b) of the definition of

cost)

Omit "section 70-55.", substitute "section 70-55; and".

58 Subsection 995-1(1) (at the end of the definition of cost,

after the note)

Add:

(c)

cost of a

registered emissions unit has the meaning given by

section 420-60.

59 Subsection 995-1(1)

Insert:

eligible no-till seeder has the meaning given by section 385-235.

60 Subsection 995-1(1)

Insert:

FIFO cost method of working out the

value of a

registered

emissions unit has the meaning given by section 420-52.

61 Subsection 995-1(1)

Insert:

free carbon unit has the same meaning as in the Clean Energy Act

2011.

62 Subsection 995-1(1) (at the end of the definition of hold)

Add:

; and (c) hold a

registered emissions unit has the meaning given by

section 420-12.

63 Subsection 995-1(1)

Insert:

international emissions unit means:

(a)

Kyoto unit; or

Taxation amendments Schedule 2

Amendments commencing at the same time as section 3 of the Clean Energy Act 2011

commences Part 2

Clean Energy (Consequential Amendments) Bill 2011 No. , 2011 169

(b)

prescribed international unit.

64 Subsection 995-1(1)

Insert:

Kyoto unit has the same meaning as in the Australian National

Registry of Emissions Units Act 2011.

65 Subsection 995-1(1)

Insert:

market value method of working out the

value of a

registered

emissions unit has the meaning given by section 420-54.

66 Subsection 995-1(1)

Insert:

prescribed international unit has the same meaning as in the

Australian National Registry of Emissions Units Act 2011.

67 Subsection 995-1(1)

Insert:

registered emissions unit has the meaning given by

section 420-10.

68 Subsection 995-1(1) (definition of trading stock)

After "modified by", insert "section 70-12 of this Act and".

69 Subsection 995-1(1) (paragraph (b) of the definition of

value)

Omit "70-C.", substitute "70-C; and".

70 Subsection 995-1(1) (after paragraph (b) of the definition

of value)

Insert:

(c)

the

value of a

registered emissions unit has the meaning

given by Subdivision 420-D; and

71 Subsection 995-1(1)

Schedule 2

Taxation amendments

Part 2

Amendments commencing at the same time as section 3 of the Clean Energy

Act 2011 commences

170 Clean Energy (Consequential Amendments) Bill 2011 No. , 2011

Insert:

vintage year of a

carbon unit has the same meaning as in the

Clean Energy Act 2011.

Income Tax (Transitional Provisions) Act 1997

72 After Part 3-45

Insert:

Part 3-50--Climate change

Division 420--Registered emissions units

Table of Subdivisions

420-A General application provision

420-B Units held before the commencement of Division 420 of the

Income Tax Assessment Act 1997

Subdivision 420-A--General application provision

Table of sections

420-1

Application of Division 420 of the Income Tax Assessment Act 1997

420-1 Application of Division 420 of the Income Tax Assessment Act

1997

Division 420 of the Income Tax Assessment Act 1997 does not

apply to a registered emissions unit held by you unless you became

the holder of the unit after the commencement of that Division.

Subdivision 420-B--Units held before the commencement of

Division 420 of the Income Tax Assessment Act 1997

Table of sections

420-5 Transitional

provision--units

held before the commencement of

Division 420 of the Income Tax Assessment Act 1997

Taxation amendments Schedule 2

Amendments commencing at the same time as section 3 of the Clean Energy Act 2011

commences Part 2

Clean Energy (Consequential Amendments) Bill 2011 No. , 2011 171

420-5 Transitional provision--units held before the commencement

of Division 420 of the Income Tax Assessment Act 1997

If, just before the commencement of Division 420 of the Income

Tax Assessment Act 1997, you held:

(a) an Australian carbon credit unit; or

(b) a Kyoto unit; or

for which there was an entry in the Australian National Registry of

Emissions Units, you are treated as if:

(d) just before that commencement, you had sold the unit to

someone else for its cost; and

(e) you had, immediately after that commencement, bought it

back as a registered emissions unit for the same amount.

72A After section 701A-5

Insert:

701A-7 Modified application of Part 3-90 of Income Tax Assessment

Act 1997 to registered emissions units of continuing

majority-owned entity

(1) The operation of Part 3-90 of the Income Tax Assessment Act 1997

is modified in accordance with this section in relation to each asset

of a continuing majority-owned entity that is a registered emissions

unit just before the entity becomes a subsidiary member of the

entity's designated group.

Continuing majority-owned entity to revalue its registered

emissions units under normal provisions

(2) For the entity core purposes:

(a) subsection 701-35(5) of the Income Tax Assessment Act 1997

does not apply in relation to the asset; and

(b) instead, the value of the asset at the end of the income year

that ends, or, if section 701-30 of that Act applies, of the

income year that is taken by subsection (3) of that section to

end, is the value determined in accordance with

sections 420-51 to 420-58 of that Act.

Schedule 2

Taxation amendments

Part 2

Amendments commencing at the same time as section 3 of the Clean Energy

Act 2011 commences

172 Clean Energy (Consequential Amendments) Bill 2011 No. , 2011

For head company, registered emissions units to be retained cost

base asset with tax cost setting amount equal to entity's year-end

valuation

(3) For the head company core purposes when the continuing

majority-owned entity becomes a subsidiary member of the

designated group, the asset is a retained cost base asset whose tax

cost setting amount is equal to the value applicable in accordance

with paragraph (2)(b).

Taxation Administration Act 1953

73 After subsection 45-120(5) in Schedule 1

Insert:

Gross proceeds on disposal of registered emissions units included

in instalment income

(5A)

Your

instalment income for a period also includes an amount that

section 420-25 of the Income Tax Assessment Act 1997 includes in

your assessable income, for the income year that is or includes that

period, because you cease to

hold a

registered emissions unit

during that period.

Taxation amendments Schedule 2

Amendments commencing on 1 July 2015 Part 3

Clean Energy (Consequential Amendments) Bill 2011 No. , 2011 173

Part 3--Amendments commencing on 1 July 2015

Income Tax Assessment Act 1997

74 Section 67-23 (table item 24)

Repeal the item.

75 Subdivision 385-J

Repeal the Subdivision.

76 Subsection 995-1(1) (definition of eligible no-till seeder)

Repeal the definition.

77 Application

The amendments made by this Part apply to assessments for the

2015-16 income year and later income years.

Schedule 3

Amendments relating to renewable energy certificates

174 Clean Energy (Consequential Amendments) Bill 2011 No. , 2011

Schedule 3--Amendments relating to

renewable energy certificates

Renewable Energy (Electricity) Act 2000

1 Section 11

Repeal the section, substitute:

11 Regulator to refuse or approve application

(1) If the Regulator receives an application that is properly made under

section 10, the Regulator must:

(a) approve the application; or

(b) refuse the application.

(2) The Regulator may refuse the application on a ground specified in

the regulations.

(3) The Regulator must refuse the application if the Regulator is

satisfied that the applicant has previously been a registered person.

2 At the end of section 23AAA

Add:

(3) A report of an inspection carried out in accordance with regulations

made under subsection (1) may set out:

(a)

conclusions;

(b)

recommendations;

(c)

other

material;

that is or are relevant to the performance of the functions, or the

exercise of the powers, conferred on the Regulator by section 26.

(4) Subsection (3) does not limit the matters that may be set out in a

report.

Note:

Inspections carried out in accordance with regulations made under

subsection (1):

(a) may be relevant in determining whether a certificate is eligible

for registration under section 26 (see subsection 26(3AA)); and

(b) provide an indication of the effectiveness of the process for the

registration of certificates.

Amendments relating to renewable energy certificates Schedule 3

Clean Energy (Consequential Amendments) Bill 2011 No. , 2011 175

3 After subsection 26(3)

Insert:

(3AA) In determining whether a certificate is eligible for registration, the

Regulator must have regard to any relevant:

(a)

conclusions;

(b)

recommendations;

(c)

other

material;

set out in a report of an inspection carried out in accordance with

regulations made under subsection 23AAA(1).

Note:

Subsection 23AAA(1) deals with the inspection of the installation of

small generation units.

(3AB) Subsection (3AA) does not limit the matters to which regard may

be had.

4 After subsection 26(3A)

Insert:

(3B) The amount of a fee prescribed under subsection (3A) must be

reasonably related to the expenses incurred, or to be incurred, by

the Commonwealth in connection with:

(a) the performance of the Regulator's functions, or the exercise

of the Regulator's powers, under this section; and

(b) the carrying out of inspections in accordance with regulations

made under subsection 23AAA(1), to the extent to which the

inspections are relevant to the performance of the functions,

or the exercise of the powers, conferred on the Regulator by

this section; and

accordance with regulations made under subsection

23AAA(1), to the extent to which such reports set out:

(i)

conclusions;

(ii)

recommendations;

(iii)

other

material;

that is or are relevant to the performance of the functions, or

the exercise of the powers, conferred on the Regulator by this

section.

(3C) A fee prescribed under subsection (3A) must not be such as to

amount to taxation.

Schedule 3

Amendments relating to renewable energy certificates

176 Clean Energy (Consequential Amendments) Bill 2011 No. , 2011

5 At the end of section 30A

Add:

Prescribed ground

(5) The Regulator may, by written notice, suspend the registration of a

registered person on a ground specified in the regulations.

(6) The registration is suspended for such period (including

permanently) as the Regulator considers appropriate in all of the

circumstances. That period must be specified in the notice.

6 Application--registration under the Renewable Energy

(Electricity) Act 2000

The amendment of Division 2 of Part 2 of the Renewable Energy

(Electricity) Act 2000 made by this Schedule applies in relation to

applications for registration made after the commencement of this item.

Amendments relating to the Australian National Registry of Emissions Units Schedule

Clean Energy (Consequential Amendments) Bill 2011 No. , 2011 177

Schedule 4--Amendments relating to the

Australian National Registry of

Emissions Units

Australian National Registry of Emissions Units Act 2011

1 Section 3

Omit "non-Kyoto international emissions units" (wherever occurring),

substitute "prescribed international units".

2 Section 4 (paragraph (e) of the definition of eligible

international emissions unit)

Omit "non-Kyoto international emissions unit", substitute "prescribed

international unit".

3 Section 4 (paragraph (b) of the definition of foreign

account)

Omit "non-Kyoto international emissions unit", substitute "prescribed

international unit".

4 Section 4 (paragraph (b) of the definition of foreign

account)

Omit "foreign non-Kyoto registry", substitute "foreign registry".

5 Section 4 (definition of foreign non-Kyoto registry)

Repeal the definition.

6 Section 4

Insert:

foreign registry means a registry that:

(a) is located in a foreign country; and

(b) is specified in the regulations.

7 Section 4 (definition of non-Kyoto international emissions

unit)

Repeal the definition.

Schedule 4

Amendments relating to the Australian National Registry of Emissions

Units

178 Clean Energy (Consequential Amendments) Bill 2011 No. , 2011

8 Section 4

Insert:

prescribed international unit means:

(a) a prescribed unit issued in accordance with an international

agreement (other than the Kyoto Protocol); or

(b) a prescribed unit issued outside Australia under a law of a

foreign country.

It is immaterial whether a unit covered by paragraph (a) was issued

in or outside Australia.

9 Section 4 (paragraph (c) of the definition of registered

holder)

Omit "non-Kyoto international emissions unit", substitute "prescribed

international unit".

10 Section 4 (paragraph (b) of the definition of transfer)

Omit "non-Kyoto international emissions unit", substitute "prescribed

international unit".

11 Subsection 5(6)

Omit "subsections 14(3) and (4)", substitute "section 14A".

12 Paragraph 15(2)(d)

Omit "non-Kyoto international emissions units", substitute "prescribed

international units".

13 Subsection 16(5)

Omit "non-Kyoto international emissions unit", substitute "prescribed

international unit".

14 Subsection 17(3) (heading)

Repeal the heading, substitute:

Prescribed international units

15 Subsection 17(3)

Omit "non-Kyoto international emissions unit", substitute "prescribed

international unit".

Amendments relating to the Australian National Registry of Emissions Units Schedule

Clean Energy (Consequential Amendments) Bill 2011 No. , 2011 179

16 After subsection 19(3)

Insert:

(3A) The Administrator must not exercise the power conferred by

subsection (1) of this section in a manner contrary to:

(a) regulations made for the purposes of section 32A or 49A of

this Act; or

(b) section 150A of the Carbon Credits (Carbon Farming

Initiative) Act 2011.

17 Section 21 (heading)

Repeal the heading, substitute:

21 General power of correction of Registry--prescribed

international units

18 Subsection 21(1)

Omit "non-Kyoto international emissions unit", substitute "prescribed

international unit".

19 After subsection 22(4)

Insert:

(4A) The court must not make an order that is contrary to:

(a) regulations made for the purposes of section 32A or 49A of

this Act; or

(b) section 150A of the Carbon Credits (Carbon Farming

Initiative) Act 2011.

20 At the end of subsection 25(1)

Add:

Note:

See also section 155 of the Evidence Act 1995.

21 Subsection 25(2)

Repeal the subsection.

22 Subparagraph 26(3)(a)(iii)

Repeal the subparagraph, substitute:

(iii) prescribed international units;

Schedule 4

Amendments relating to the Australian National Registry of Emissions

Units

180 Clean Energy (Consequential Amendments) Bill 2011 No. , 2011

23 At the end of Division 7 of Part 2

Add:

28A Administrator may defer giving effect to a transfer instruction

Scope

(1) This section applies if the Administrator receives an instruction to

transfer one or more:

(a) Australian carbon credit units; or

(b) Kyoto units; or

to or from a Registry account kept in the name of a person.

Administrator may defer giving effect to the instruction

(2) The Administrator may defer giving effect to the instruction, for a

period not exceeding 48 hours, if the Administrator is satisfied that

it is prudent to do so in order to:

(a) ensure the integrity of the Registry; or

(b) prevent, mitigate or minimise abuse of the Registry; or

Registry.

Prior notice not required

(3) The Administrator is not required to give any prior notice of a

deferral under subsection (2).

Other provisions

(4) This section has effect despite:

(a) any other provision of this Act; or

(b) anything in the Carbon Credits (Carbon Farming Initiative)

Act 2011.

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Clean Energy (Consequential Amendments) Bill 2011 No. , 2011 181

28B Administrator may refuse to give effect to a transfer instruction

Scope

(1) This section applies if the Administrator receives an instruction to

transfer one or more:

(a) Australian carbon credit units; or

(b) Kyoto units; or

to or from a Registry account kept in the name of a person.

Administrator may refuse to give effect to instruction

(2) The Administrator may refuse to give effect to the instruction if the

Administrator is satisfied that it is prudent to do so in order to:

(a) ensure the integrity of the Registry; or

(b) prevent, mitigate or minimise abuse of the Registry; or

Registry.

Notification

(3) As soon as practicable after the Administrator refuses, under

subsection (2), to give effect to the instruction, the Administrator

must give written notice of the refusal to:

(a) in any case--the person; or

(b) if the instruction was given by another person--that other

person.

(4) A notice given to a person under subsection (3) must invite the

person to request the Administrator to cease to refuse to give effect

to the instruction.

(5) A request under subsection (4) must:

(a) be in writing; and

(b) be in a form approved, in writing, by the Administrator; and

(6) If the person makes a request under subsection (4), the

Administrator may, by written notice given to the person, require

the person to give the Administrator, within the period specified in

the notice, further information in connection with the request.

Schedule 4

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Units

182 Clean Energy (Consequential Amendments) Bill 2011 No. , 2011

Prior notice not required

(7) The Administrator is not required to give any prior notice of a

refusal under subsection (2).

Decision on request

(8) If the Administrator receives a request under subsection (4), the

Administrator must:

(a) cease to refuse to give effect to the instruction; or

(b) decide to continue to refuse to give effect to the instruction.

(9) The Administrator must take all reasonable steps to ensure that a

decision is made under subsection (8):

(a) if the Administrator requires the person to give further

information under subsection (6) in relation to the request--

within 7 days after the person gave the Administrator the

information; or

(b) otherwise--within 7 days after the request was made.

(10) As soon as practicable after the Administrator makes a decision

under subsection (8), the Administrator must notify the person, in

writing, of the decision.

Other provisions

(11) This section has effect despite:

(a) any other provision of this Act; or

(b) anything in the Carbon Credits (Carbon Farming Initiative)

Act 2011.

Note:

For additional powers of refusal, see:

(a) paragraph 34(3)(a) of this Act; and

(b) paragraph 35(3)(a) of this Act; and

(d) subsection 53(2) of this Act.

Amendments relating to the Australian National Registry of Emissions Units Schedule

Clean Energy (Consequential Amendments) Bill 2011 No. , 2011 183

28C Conditions restricting or limiting the operation of Registry

accounts

Scope

(1) This section applies to a Registry account kept in the name of a

person.

Imposition of conditions

(2) The Administrator may, by written instrument, impose conditions

restricting or limiting the operation of the Registry account for a

specified period.

(3) The Administrator may exercise the power conferred by

subsection (2):

(a) on the Administrator's own initiative; or

(b) on written request made to the Administrator by the person.

(4) The Administrator must not make an instrument under

subsection (2) unless the Administrator is satisfied that it is prudent

to do so in order to:

(a) ensure the integrity of the Registry; or

(b) prevent, mitigate or minimise abuse of the Registry; or

Registry.

(5) A condition under subsection (2) may:

(a) prohibit, restrict or limit the transfer of units from the

Registry account; or

(b) prohibit, restrict or limit the transfer of units to the Registry

account.

(6) Subsection (5) does not limit subsection (2).

Notification

(7) As soon as practicable after making an instrument under

subsection (2), the Administrator must give the person a copy of

the instrument.

(8) If an instrument under subsection (2) is made on the

Administrator's own initiative, the copy of the instrument must be

Schedule 4

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Units

184 Clean Energy (Consequential Amendments) Bill 2011 No. , 2011

accompanied by a notice inviting the person to request the

Administrator to:

(a) revoke the instrument; or

(b) vary the instrument in the manner specified in the request.

Request

(9) A request under paragraph (3)(b) or subsection (8) must:

(a) be in writing; and

(b) be in a form approved, in writing, by the Administrator; and

Further information

(10) If the person makes a request under subsection (8), the

Administrator may, by written notice given to the person, require

the person to give the Administrator, within the period specified in

the notice, further information in connection with the request.

Prior notice not required

(11) The Administrator is not required to give any prior notice of a

decision to make an instrument under subsection (2).

Decision in relation to instrument made on own initiative

(12) If the Administrator receives a request under subsection (8), the

Administrator must:

(a) if the request is to revoke the instrument:

(i) revoke the instrument; or

(ii) decide not to revoke the instrument; or

(b) if the request is to vary the instrument:

(i) vary the instrument as requested; or

(ii) decide not to vary the instrument.

(13) The Administrator must take all reasonable steps to ensure that a

decision is made under subsection (12):

(a) if the Administrator requires the person to give further

information under subsection (10) in relation to the request--

within 7 days after the person gave the Administrator the

information; or

Amendments relating to the Australian National Registry of Emissions Units Schedule

Clean Energy (Consequential Amendments) Bill 2011 No. , 2011 185

(b) otherwise--within 7 days after the request was made.

(14) As soon as practicable after the Administrator makes a decision

under subsection (12), the Administrator must notify the person, in

writing, of the decision.

Revocation of instrument made in response to a request

(15)

If:

(a) an instrument is in force under subsection (2); and

(b) the instrument was made in response to a request under

paragraph (3)(b);

the Administrator must, at the written request of the person, revoke

the instrument.

Acts Interpretation Act

(16) Subsections (12) and (15) do not, by implication, limit subsection

33(3) of the Acts Interpretation Act 1901.

Other provisions

(17) This section has effect despite:

(a) any other provision of this Act; or

(b) anything in the Carbon Credits (Carbon Farming Initiative)

Act 2011.

28D Suspension of Registry accounts

Scope

(1) This section applies to a Registry account kept in the name of a

person.

Suspension

(2) The Administrator may, by written instrument, suspend the

Registry account for a specified period.

(3) The Administrator may exercise the power conferred by

subsection (2):

(a) on the Administrator's own initiative; or

(b) on written request made to the Administrator by the person.

Schedule 4

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Units

186 Clean Energy (Consequential Amendments) Bill 2011 No. , 2011

(4) The Administrator must not make an instrument under

subsection (2) unless the Administrator is satisfied that it is prudent

to do so in order to:

(a) ensure the integrity of the Registry; or

(b) prevent, mitigate or minimise abuse of the Registry; or

Registry.

(5) If an account is suspended under subsection (2):

(a) the Administrator must not:

(i) give effect to any instruction to transfer units to or from

the Registry account; or

(ii) issue any Australian carbon credit units to the Registry

account; and

(b) a notice to relinquish Australian carbon credit units under

section 175 of the Carbon Credits (Carbon Farming

Initiative) Act 2011 does not have effect.

Notification

(6) As soon as practicable after making an instrument under

subsection (2), the Administrator must give the person a copy of

the instrument.

(7) If an instrument under subsection (2) is made on the

Administrator's own initiative, the copy of the instrument must be

accompanied by a notice inviting the person to request the

Administrator to:

(a) revoke the instrument; or

(b) vary the instrument in the manner specified in the request.

Request

(8) A request under paragraph (3)(b) or subsection (7) must:

(a) be in writing; and

(b) be in a form approved, in writing, by the Administrator; and

Further information

(9) If the person makes a request under subsection (7), the

Administrator may, by written notice given to the person, require

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Clean Energy (Consequential Amendments) Bill 2011 No. , 2011 187

the person to give the Administrator, within the period specified in

the notice, further information in connection with the request.

Prior notice not required

(10) The Administrator is not required to give any prior notice in

relation to the decision to make an instrument under subsection (2).

Decision in relation to instrument made on own initiative

(11) If the Administrator receives a request under subsection (7), the

Administrator must:

(a) if the request is to revoke the instrument:

(i) revoke the instrument; or

(ii) decide not to revoke the instrument; or

(b) if the request is to vary the instrument:

(i) vary the instrument as requested; or

(ii) decide not to vary the instrument.

(12) The Administrator must take all reasonable steps to ensure that a

decision is made under subsection (11):

(a) if the Administrator requires the person to give further

information under subsection (9) in relation to the request--

within 7 days after the person gave the Administrator the

information; or

(b) otherwise--within 7 days after the request was made.

(13) As soon as practicable after the Administrator makes a decision

under subsection (11), the Administrator must notify the person, in

writing, of the decision.

Revocation of instrument made in response to a request

(14)

If:

(a) an instrument is in force under subsection (2); and

(b) the instrument was made in response to a request under

paragraph (3)(b);

the Administrator must, at the written request of the person, revoke

the instrument.

Schedule 4

Amendments relating to the Australian National Registry of Emissions

Units

188 Clean Energy (Consequential Amendments) Bill 2011 No. , 2011

Acts Interpretation Act

(15) Subsections (11) and (14) do not, by implication, limit subsection

33(3) of the Acts Interpretation Act 1901.

Other provisions

(16) This section has effect despite:

(a) any other provision of this Act; or

(b) anything in the Carbon Credits (Carbon Farming Initiative)

Act 2011.

24 After section 32

Insert:

32A Ownership of Kyoto unit

(1) The regulations may provide that the registered holder of a Kyoto

unit:

(a) is the legal owner of the unit; and

(b) may, subject to this Act, deal with the unit as its legal owner

and give good discharges for any consideration for any such

dealing.

(2) Regulations made for the purposes of subsection (1) only protect a

person who deals with the registered holder of the unit as a

purchaser:

(a) in good faith for value; and

(b) without notice of any defect in the title of the registered

holder.

25 After section 45

Insert:

45A Registration of equitable interests in relation to Kyoto units

(1) The regulations may make provision for or in relation to the

registration in the Registry of equitable interests in relation to

Kyoto units.

Amendments relating to the Australian National Registry of Emissions Units Schedule

Clean Energy (Consequential Amendments) Bill 2011 No. , 2011 189

(2) Subsection (1) does not apply to an equitable interest that is a

security interest within the meaning of the Personal Property

Securities Act 2009, and to which that Act applies.

26 Part 4 (heading)

Repeal the heading, substitute:

Part 4--Prescribed international units

27 Section 48

Omit "non-Kyoto international emissions units", substitute "prescribed

international units".

28 Section 49 (heading)

Repeal the heading, substitute:

49 Entries for prescribed international units

29 Section 49

Omit "non-Kyoto international emissions unit", substitute "prescribed

international unit".

30 After section 49

Insert:

49A Ownership of prescribed international unit

(1) The regulations may provide that the registered holder of a

prescribed international unit:

(a) is the legal owner of the unit; and

(b) may, subject to this Act, deal with the unit as its legal owner

and give good discharges for any consideration for any such

dealing.

(2) Regulations made for the purposes of subsection (1) only protect a

person who deals with the registered holder of the unit as a

purchaser:

(a) in good faith for value; and

Schedule 4

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Units

190 Clean Energy (Consequential Amendments) Bill 2011 No. , 2011

(b) without notice of any defect in the title of the registered

holder.

31 Section 50 (heading)

Repeal the heading, substitute:

50 Transfer of prescribed international units

32 Subsections 50(1) and (2)

Omit "non-Kyoto international emissions unit", substitute "prescribed

international unit".

33 Section 51 (heading)

Repeal the heading, substitute:

51 Domestic transfers of prescribed international units

34 Subsection 51(1)

Omit "non-Kyoto international emissions units", substitute "prescribed

international units".

35 Section 52 (heading)

Repeal the heading, substitute:

52 Outgoing international transfers of prescribed international units

36 Subsection 52(1)

Omit "non-Kyoto international emissions units", substitute "prescribed

international units".

37 Section 53 (heading)

Repeal the heading, substitute:

53 Incoming international transfers of prescribed international units

38 Subsection 53(1)

Omit "non-Kyoto international emissions unit" (wherever occurring),

substitute "prescribed international unit".

Amendments relating to the Australian National Registry of Emissions Units Schedule

Clean Energy (Consequential Amendments) Bill 2011 No. , 2011 191

39 Subsections 53(2) and (3)

Omit "non-Kyoto international emissions unit", substitute "prescribed

international unit".

40 Section 54 (heading)

Repeal the heading, substitute:

54 A registered prescribed international unit is personal property

for certain purposes

41 Subsection 54(1)

Omit "non-Kyoto international emissions unit", substitute "prescribed

international unit".

42 After section 54

Insert:

54A Registration of equitable interests in relation to prescribed

international units

(1) The regulations may make provision for or in relation to the

registration in the Registry of equitable interests in relation to

prescribed international units.

(2) Subsection (1) does not apply to an equitable interest that is a

security interest within the meaning of the Personal Property

Securities Act 2009, and to which that Act applies.

43 Section 55 (heading)

Repeal the heading, substitute:

55 Equitable interests in relation to a prescribed international unit

44 Subsection 55(1)

Omit "non-Kyoto international emissions unit", substitute "prescribed

international unit".

45 Section 56 (heading)

Repeal the heading, substitute:

Schedule 4

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Units

192 Clean Energy (Consequential Amendments) Bill 2011 No. , 2011

56 Transmission of registered prescribed international units by

operation of law etc.

46 Paragraph 56(1)(a)

Omit "non-Kyoto international emissions unit", substitute "prescribed

international unit".

47 After subsection 56(1)

Insert:

Effect of transmission

(1A) The transmission is of no force until the Administrator transfers the

prescribed international unit under subsection (7) or (8).

48 Section 57 (heading)

Repeal the heading, substitute:

57 Regulations about prescribed international units

49 Section 57

Omit "non-Kyoto international emissions units", substitute "prescribed

international units".

50 Section 58

Omit "non-Kyoto international emissions units", substitute "prescribed

international units".

51 Subsection 61(3) (heading)

Repeal the heading, substitute:

Prescribed international units

52 Paragraphs 61(3)(a) and (4)(a)

Omit "non-Kyoto international emissions unit", substitute "prescribed

international unit".

53 Section 63 (heading)

Repeal the heading, substitute:

Amendments relating to the Australian National Registry of Emissions Units Schedule

Clean Energy (Consequential Amendments) Bill 2011 No. , 2011 193

63 Information about number of voluntarily cancelled prescribed

international units

54 Section 63

Omit "non-Kyoto international emissions units" (wherever occurring),

substitute "prescribed international units".

55 Section 64

Omit "non-Kyoto international emissions units", substitute "prescribed

international units".

56 Section 66 (heading)

Repeal the heading, substitute:

66 Voluntary cancellation of prescribed international units

57 Subsection 66(1)

Omit "non-Kyoto international emissions units", substitute "prescribed

international units".

58 Paragraph 66(2)(a)

Omit "non-Kyoto international emissions unit", substitute "prescribed

international unit".

59 Paragraph 66(2)(b)

Omit "non-Kyoto international emissions unit", substitute "prescribed

international unit".

60 Subsection 66(3)

Omit "non-Kyoto international emissions unit", substitute "prescribed

international unit".

61 Section 82 (at the end of the table)

Add:

A decision under subsection 28B(8) to continue to refuse to give effect to a

transfer instruction.

A decision under subsection 28C(12) not to revoke an instrument imposing

conditions restricting or limiting the operation of a Registry account.

Schedule 4

Amendments relating to the Australian National Registry of Emissions

Units

194 Clean Energy (Consequential Amendments) Bill 2011 No. , 2011

A decision under subsection 28C(12) not to vary an instrument imposing

conditions restricting or limiting the operation of a Registry account.

A decision under subsection 28D(11) not to revoke an instrument

suspending a Registry account.

A decision under subsection 28D(11) not to vary an instrument suspending a

Registry account.

Amendments relating to the Carbon Farming Initiative Schedule 5

Clean Energy (Consequential Amendments) Bill 2011 No. , 2011 195

Schedule 5--Amendments relating to the

Carbon Farming Initiative

Carbon Credits (Carbon Farming Initiative) Act 2011

1 Section 5 (definition of foreign account)

Omit "foreign non-Kyoto registry", substitute "foreign registry".

2 Section 5 (definition of foreign non-Kyoto registry)

Repeal the definition.

3 Section 5

Insert:

foreign registry has the same meaning as in the Australian

National Registry of Emissions Units Act 2011.

4 Subsection 7(6)

Omit "subsections 14(3) and (4)", substitute "section 14A".

5 After subsection 16(2)

Insert:

Prescribed non-CFI offsets scheme

(2A) If the project area for the project is or was, or the project areas for

the project are or were, wholly or partly covered by a prescribed

non-CFI offsets scheme, the number worked out using the formula

in subsection (2) is to be reduced by the number ascertained in

accordance with the regulations.

6 Before subsection 16(3)

Insert:

Rounding down

7 After subsection 17(3)

Insert:

Schedule 5

Amendments relating to the Carbon Farming Initiative

196 Clean Energy (Consequential Amendments) Bill 2011 No. , 2011

Prescribed non-CFI offsets scheme

(3A) If the project area for the project is or was, or the project areas for

the project are or were, wholly or partly covered by a prescribed

non-CFI offsets scheme, the number worked out using the formula

in subsection (2) or (3) is to be reduced by the number ascertained

in accordance with the regulations.

8 At the end of section 18

Add:

Prescribed non-CFI offsets scheme

(3) If the project area for the project is or was, or the project areas for

the project are or were, wholly or partly covered by a prescribed

non-CFI offsets scheme, the number of tonnes referred to in

subsection (2) is to be reduced by the number ascertained in

accordance with the regulations.

9 Subparagraph 23(1)(e)(i)

Omit "was, or the project areas for the project were", substitute "is or

was, or the project areas for the project are or were".

10 After subparagraph 23(1)(e)(i)

Insert:

(ia) the prescribed non-CFI offsets scheme is specified in

regulations made for the purposes of this subparagraph;

and

11 Paragraph 27(4)(m)

Omit "project; and", substitute "project.".

12 Paragraph 27(4)(n)

Repeal the paragraph.

13 After subsection 41(4)

Insert:

(4A) Paragraph (1)(b) does not apply to a requirement of a kind

specified in the regulations.

Amendments relating to the Carbon Farming Initiative Schedule 5

Clean Energy (Consequential Amendments) Bill 2011 No. , 2011 197

(4B) Subsection (4A) does not, by implication, limit the application of

subsection 13(3) of the Legislative Instruments Act 2003 to another

instrument under this Act.

14 At the end of section 41

Add:

Regulations

(6)

If:

(a) regulations specifying a particular kind of project were made

for the purposes of paragraph (1)(a), in accordance with

section 4 of the Acts Interpretation Act 1901, during the

period:

(i) beginning at the commencement of section 1; and

(ii) ending at the commencement of section 3; and

(b) before recommending to the Governor-General that those

regulations should be made, the Minister requested the

Interim Domestic Offsets Integrity Committee to advise the

Minister about whether such a project should, or should not,

be specified in those regulations; and

this Act has effect, and is taken always to have had effect, as if the

Minister had, before recommending to the Governor-General that

those regulations should be made:

(d) requested the Domestic Offsets Integrity Committee to advise

the Minister about whether such a project should, or should

not, be specified in those regulations; and

(e) complied with paragraph (3)(c); and

(f) complied with subsection (5).

15 At the end of subsection 95(2)

Add:

; and (c) if the project is a landfill legacy emissions avoidance

project--paragraph 41(1)(b) had not been enacted.

16 Subsection 95(3)

Omit "was, or the project areas were", substitute "is or was, or the

project areas are or were".

Schedule 5

Amendments relating to the Carbon Farming Initiative

198 Clean Energy (Consequential Amendments) Bill 2011 No. , 2011

17 At the end of subsection 95(3)

Add "that is specified in regulations made for the purposes of

subparagraph 23(1)(e)(ia)".

18 Subsection 131(3) (heading)

Repeal the heading, substitute:

Effect

19 At the end of section 131

Add:

(4)

If:

(a) before the commencement of this section, the Interim

Domestic Offsets Integrity Committee published on the

Department's website:

(i) the proposal; and

(ii) a notice inviting the public to make a submission to the

Committee on the proposal by a specified time limit;

and

(b) the time limit was not shorter than 30 days;

this Act has effect, and is taken always to have had effect, as if the

Domestic Offsets Integrity Committee had complied with

paragraph 112(5)(a) and subsection 112(6) in relation to the

proposal.

(5)

If:

(a) before the commencement of this section, the Interim

Domestic Offsets Integrity Committee received any

submissions in accordance with a notice referred to in

subsection (4) in relation to the proposal; and

(b) before the commencement of this section, the Interim

Domestic Offsets Integrity Committee:

(i) considered the submissions; and

(ii) published the submissions on the Department's website;

this Act has effect, and is taken always to have had effect, as if the

Domestic Offsets Integrity Committee had complied with

paragraph 112(5)(b) and subsection 112(11) in relation to the

proposal.

Amendments relating to the Carbon Farming Initiative Schedule 5

Clean Energy (Consequential Amendments) Bill 2011 No. , 2011 199

(6) Subparagraph (5)(b)(ii) does not apply in relation to a particular

submission made by a person if the person has requested the

Interim Domestic Offsets Integrity Committee not to publish the

submission on the ground that publication of the submission could

reasonably be expected to substantially prejudice the commercial

interests of the person or another person.

(7)

If:

(a) before the commencement of this section, the Interim

Domestic Offsets Integrity Committee received any

submissions in accordance with a notice referred to in

subsection (4) in relation to a proposal; and

(b) paragraph (5)(b) does not apply in relation to the

submissions;

this Act has effect, and is taken always to have had effect, as if the

Domestic Offsets Integrity Committee had received the

submissions under subsection 112(5) within the time limit referred

to in subparagraph 112(5)(a)(ii).

20 After section 150

Insert:

150A Ownership of Australian carbon credit unit

(1) The registered holder of an Australian carbon credit unit:

(a) is the legal owner of the unit; and

(b) may, subject to this Act and the Australian National Registry

of Emissions Units Act 2011, deal with the unit as its legal

owner and give good discharges for any consideration for any

such dealing.

(2) Subsection (1) only protects a person who deals with the registered

holder of the unit as a purchaser:

(a) in good faith for value; and

(b) without notice of any defect in the title of the registered

holder.

21 Subsection 152(1)

After "Australian carbon credit unit", insert "for which there is an entry

in a Registry account".

Schedule 5

Amendments relating to the Carbon Farming Initiative

200 Clean Energy (Consequential Amendments) Bill 2011 No. , 2011

22 Subsection 153(1)

After "Australian carbon credit unit", insert "for which there is an entry

in a Registry account".

22A After subsection 153(1)

Insert:

Effect of transmission

(1A) The transmission is of no force until the Administrator transfers the

Australian carbon credit unit under subsection (7) or (8).

23 After section 157

Insert:

157A Registration of equitable interests in relation to an Australian

carbon credit unit

(1) The regulations may make provision for or in relation to the

registration in the Registry of equitable interests in relation to

Australian carbon credit units.

(2) Subsection (1) does not apply to an equitable interest that is a

security interest within the meaning of the Personal Property

Securities Act 2009, and to which that Act applies.

24 Paragraph 162(a)

Omit "before 31 December 2011", substitute "within 6 months after the

commencement of this section".

25 Subsection 257(3)

Repeal the subsection, substitute:

(3) The Minister must ensure that the Chair of the Domestic Offsets

Integrity Committee is not a person covered by subsection (4).

26 Subsection 257(6)

Omit "one Domestic Offsets Integrity Committee member is an

officer", substitute "at least one, and not more than 2, Domestic Offsets

Integrity Committee members are officers".

Commonwealth of Australia Bills

CLEAN ENERGY (CONSEQUENTIAL AMENDMENTS) BILL 2011