The Carbon Pricing Mechanism has been abolished from 1 July 2014; however, businesses must still fulfil their existing obligations for 2013-14. This means liable entities must continue to pay carbon tax and meet reporting obligations under the National Greenhouse and Energy Reporting (NGER) scheme.
Tim Pittaway, principal, Risk Advisory Services, RSM Bird Cameron explains that liable entities are required to meet their registration, reporting, auditing and acquittal obligations for the 2013-14 financial year. All unregistered liable entities and controlling corporations reporting under the NGER Act must register for the 2013-14 reporting year by 31 August 2014. Additionally, any liable entity with an emissions number exceeding 125,000 must still arrange to have a pre-submission audit performed.
The Jobs and Competitiveness Program (JCP) has also been discontinued from 1 July 2014. According to Tim Pittaway, businesses that have received assistance for 2013-14 under the JCP should provide a report to the Clean Energy Regulator (CER) as part of a true-up process.
Where the Emissions Reduction Fund (ERF) is concerned, Tim Pittaway says organisations benefitting from the funding potentially available under the ERF should be reviewing their activities and identifying projects now to determine how best to take advantage of the program.
Examples of projects that will be eligible under the ERF include capturing methane from wastewater facilities and energy efficiency improvements in the commercial building sector.
The Carbon Farming Initiative approach will also be expanded moving forward so that other parts of the economy can access the system. This includes areas such as energy efficiency, waste coal mine gas, cleaning up power stations, the transport sector and large industrial facilities.