Skip to content Skip to sidebar Skip to footer

True-up process for the free carbon units issued under the Jobs and Competitiveness Program for the 2013-14 FY

The Department of Environment released a rule (the Rule) last week which outlines the true-up process of the JCP free carbon units for the 2013-14 financial year.

As explained in the accompanying consultation paper made available earlier, the process involves correcting an allocation of free carbon units for a financial year based on the actual production for that year. To this end, the Clean Energy Regulator (CER) undertakes a ‘true-up’ adjustment process as part of the calculation of assistance for the last fixed price year 2013-14.

As part of the process, the applicants are required to lodge an accompanying audit report with the true-up report in order to substantiate the actual production figures. An adjustment is then calculated by the CER based on the difference between the previous financial year’s production (on which the allocation was based) and the actual production for the past financial year.

Furthermore, there are provisions in the Rule which empower the CER to make additional adjustments for certain circumstances such as sub-threshold facilities, a maximum cap on the number of units for new facilities; and a supplementary allocation for liquefied natural gas (LNG) facilities.

It is also worth noting that unlike the voluntary participation in the original program, EITE entities will be required by law to lodge a true-up report if they have received free permits previously.

In terms of estimation of the previous year adjustment of permits based on the actual production data, the Rule provides for using the same methods and applying the same formulae in Part 9 of Schedule 1 to the Clean Energy Regulations 2011 as if the program continued to operate in 2014-15.

With regards to the timeline, a key consideration in determining the timing of the true-up process was to ensure that that entities entitled to an additional allocation of units have sufficient opportunity to meet their carbon tax liabilities or sell the units back to the Government before 2 February 2015 (the final surrender date for 2013-14 liabilities). As such, the government has proposed the following timeline:

DateProposed process/step
31 October 2014True-up report due date: Due date for entities to submit a true-up report containing audited 2013-14 production data and other relevant information to the Regulator.Unlike the Jobs and Competitiveness Program, under which participation was voluntary, submission of a true-up report under the draft True-up Rules would be compulsory for affected entities.
1 December 2014Extension true-up report due date: Due date for entities to submit a true-up report, if an extension has been granted by the Regulator.
Up to 45 days after true-up report is received, or requested further information is providedTrue-up adjustment notice provided: Maximum time for the Regulator to provide an entity with an ‘adjustment notice’, which will inform the entity whether it has an under- or over-allocation for 2013-14.Note: Where further information has been requested by the Regulator, the 45 days would commence once the requested information has been provided.
15 December 2014Submission of additional information: If the Regulator requests further information from a designated person relating to their true-up report, the Regulator will specify a date for provision of that information. The Regulator will not be able to specify a date that is after 15 December 2014.
16 January 2015Last date for true-up adjustment notification: Final date for the Regulator to issue a true-up adjustment notice.
2 days after the issue of a true-up adjustment notice and no later than 23 January 2015Final issuance date: Final date for the Regulator to issue any additional units that relate to an under-allocation.
1 February 2015Final buy-back date: Final date for Government buy-back of units.
2 February 2015Final surrender date: Final date for entities to relinquish units to deal with any over-allocation. After this date, the value of over-allocated units will be payable as cash in the form of a true-up shortfall levy. The Regulator will issue a notice indicating the amount of true-up shortfall levy due and when it is to be paid.
9 February 2015Designated carbon unit day: All carbon units will cease to exist after this date (or a date specified by legislative instrument).
16 February 2015True-up shortfall levy due: The true-up shortfall levy is calculated as number of over-allocated units not relinquished x $24.15. If not paid by this date, the levy will be subject to a 20 per cent per annum penalty rate

Business Hours

Mon - Fri : 9am - 5.30pm

Melbourne - HQ

Level 2, 27 – 31 King street, Melbourne, VIC 3000 P: +61 3 7035 1740

Sydney

Commons Central, 20-40 Meagher St, Chippendale, Sydney, NSW 2000 P: +61 3 7035 1740

Brisbane

Level 6, 200 Adelaide Street, Brisbane, Qld, 4000 P: +61 3 7035 1740

Perth

Level 25, South 32 Building, 108 St Georges Terrace, Perth, WA 6000 P: +61 8 6557 8571

Ndevr Environmental Pty Ltd© 2021. All Rights Reserved. Founded 2010. Privacy Policy.
B-Corp-Climate-Active-logo

MAKE AN ENQUIRY

Please complete the form below and we’ll be in contact with you shortly.





    ATIYAH

    CARBON NEUTRAL PRODUCT

    ​AWESOME STREETFOOD, ZERO CARBON – that’s Atiyah. With its launch in 2020, Atiyah became Australia’s first 100% renewable-run street food zero-carbon kitchen certified under Climate Active. Atiyah sets operational carbon efficiency benchmarks and raises awareness about the global warming impact of food choices. They even disclosed the footprint of every item on their menu to empower their customers’ low-carbon lifestyle. We assist ATIYAH with their carbon neutrality certification.

    ORIGIN

    CARBON NEUTRAL ORGANISATION & PRODUCT

    Responsible business is at the heart of what Intrepid does. Intrepid has been a pioneer in measuring and reporting carbon emissions since 2010. When it joined the Climate Active family in 2018, it became the largest global provider of carbon neutral certified travel adventures and the first company to voluntarily include all global operations in its certification.

    NEXTDC

    CARBON NEUTRAL ORGANISATION & PRODUCT NEXTDC are one of Australia‘s most trusted providers of data centre solutions. Since 2018 we’ve been assisting them with their Greenhouse Gas (GHG) accounting and in March 2021, the company broke ground with the launch of NEXTneutral, an innovative Climate Active-compliant colocation opt-in program for their customers. Learn more.

    GOODMAN

    COMMERCIAL & INDUSTRIAL PROPERTY
    Goodman Group is an ASX20 global property expert in logistics and business space. It owns, develops and manages industrial property in 17 countries. We provide strategic advisory on Goodman’s operational GHG inventory and trajectory, the GHG intensity of its investment portfolio, net zero pathway and carbon neutral certification, as well as the renewable energy delivery strategy.

    ISPT

    PROPERTY FUND MANAGEMENT
    ISPT is one of Australia’s largest unlisted property fund managers, with over $11.9 billion of funds under management. We assist ISPT with its net zero pathway, land-based offset strategy as well as maintaining its carbon neutral certification. When ISPT joined the Climate Active network, it pioneered many concepts. It became the first participant under Climate Active to voluntarily include base building operations on all its owned and operated properties into its organisational certification and, as an industry first, procured 100% Australian Carbon Credit Offset Units (ACCUs).

    BHP

    METALS & MINING
    BHP is an ASX listed, world-leading resources company and are among the world’s top producers of major commodities, including iron ore, metallurgical coal and copper. They also have substantial interests in oil, gas and energy coal. We assist BHP comply with energy and greenhouse gas legislation and advise facilities on matters related to energy use and production emissions.

    Intrepid

    TRAVEL
    Intrepid Travel is the largest small group adventure travel company in the world. Responsible business is at the heart of what Intrepid does. We assist Intrepid with their Human Rights reporting obligations as well as many aspects of its GHG accounting and reporting. This includes its Science-based target (SBT), making them the first tour operator with approved SBT. When Intrepid joined the Climate Active family in 2018, it became the largest global provider of carbon neutral certified travel adventures and the first company to voluntarily include all global operations in its certification.

    LION

    BEVERAGES
    Lion is a global beverage company with a portfolio of brands in beer, cider, wine, spirits, seltzers, and non-alcoholic drinks. Lion has four large and four small Australian breweries, and its brands include XXXX, GOLD, Tooheys New, and Little Creatures. We assisted Lion to become Australia’s first large-scale brewer to be certified as carbon neutral under Climate Active in 2020.

    QANTAS Airline

    AIRLINE
    Founded in the Queensland outback in 1920, Qantas has grown to be Australia’s largest domestic and international airline. We have worked with Qantas since 2016 on a variety of emissions reduction projects.

    ORICA

    METALS & MINING
    Orica is the world’s largest provider of commercial explosives and innovative blasting systems to the mining, quarrying, oil and gas and construction markets, a leading supplier of sodium cyanide for gold extraction, and a specialist provider of ground support services in mining and tunnelling. We assist Orica with their regulatory reporting such as NGERs and also carbon abatement projects.

    Fulton Hogan

    CONSTRUCTION
    Fulton Hogan has more than 80 years experience in the transport, water, energy, mining, civil construction and land development infrastructure in New Zealand, Australia and the South Pacific.
    We assist Fulton Hogan comply with NGER and NPI legislation for their extensive national operations. We work Fulton’s team to streamline reporting procedures to avoid duplicating data handling and transparently demonstrate data flows and aggregations.

    TOYOTA AUSTRALIA

    AUTOMOTIVE
    Toyota Australia was founded in 1963 and is one of Australia’s leading automotive companies. We have worked with Toyota since 2018 on many aspects of its GHG accounting, target setting, reduction initiatives, and reporting. We continue to inform strategic decisions around the contribution of the Australian business to the realisation of Toyota’s global Environmental Challenge 2050.

    H&H Group / Swisse Wellness

    CONSUMER GOODS
    H&H Group is a global health and nutrition company listed on the Hong Kong Stock Exchange. Consumer brands include Biostime, Solid Gold Pet, Dodie, Good Goût, Aurelia Probiotic Skincare, CBII, and Swisse Wellness, a vitamin, supplement, and skincare brand, born in Australia in 1969. We have been working with Swisse and the group on many aspects of its GHG accounting and reporting, including the ongoing management of its Climate Active certification.

    AGL ENERGY

    ENERGY
    AGL is one of Australia’s leading energy companies offering electricity, gas, solar and renewable energy services, plus internet and mobile plans. We have assisted AGL for over five years on a variety of activities including audit and assurance projects.

    VIVA ENERGY

    ENERGY
    Viva Energy is a leading energy company which supplies about a quarter of Australia’s fuel requirements. Viva Energy make, import, blend and deliver fuels, lubricants, solvents and bitumen through extensive national and international supply chains. We assist Viva Energy with a range of energy and greenhouse gas related projects. These include annual NGER reporting, Safeguard baseline setting, advice on Emission Reduction Fund opportunities and emission trajectories.