Environment « Australian Regulatory Compliance Review from Langes+ Lawyers

May 4, 2012

ASIC policies on emissions units advisers

ASIC has released its final policies on adviser training and financial requirements for entities and individuals providing financial services in relation to emissions units: RG 146 now contains guidance on specialist knowledge requirements for advisers providing financial product advice to retail clients on emissions units.

ASIC has also released an updated version of Regulatory Guide 236 Do I need a licence to participate in carbon markets? (RG 236)

No specific updates have been made to RG 166: AFS licensees providing financial services for regulated emissions units should meet the current requirements of RG 166.

Print This Post

Posted 4th May 2012 by admin in Corporations Act, Environment, Financial Services

May 2, 2012

ASIC issues guide to registration and licensing of financial services in emissions units

ASIC has developed a regulatory guide, Do I need a licence to participate in carbon markets? (RG 236) to help people determine whether they require an AFS licence to provide financial product advice and other financial services in emissions units.

Registrations for those involved in either advising, dealing, making a market or providing a custodial or depository service in relation to emissions units can be lodged with ASIC from 1 May until 30 June 2012.

Applications for registration must be made in Form FS91.

Print This Post

Posted 2nd May 2012 by David Jacobson in Corporations Act, Environment

April 12, 2012

Carbon units financial licensing requirements

Corporations Amendment Regulation 2012 (No. 1) was registered on 11 April 2012.

This regulation amends the Corporations Regulations 2001 to recognise Australian carbon credit units issued under the Carbon Farming Initiative, eligible international emissions units issued in accordance with the Kyoto rules or another relevant international agreement and carbon units issued under the Clean Energy Legislation, as financial products from 1 July 2012.

The regulations provide a transitional period for a person until 31 December 2012 to enable persons to apply for a licence to provide a financial service in relation to a carbon unit, an Australian carbon credit unit, or an eligible international emissions unit before the licensing requirements commence. A person must not provide a financial service in relation to carbon units, Australian carbon credit units, or eligible international emissions units unless the person holds a licence authorising the person to provide the financial service or is registered to provide the financial service.

– From 1 May 2012 to 30 June 2012, a person may apply to be registered to provide the financial service;

– From 1 May 2012 to 31 October 2012, a person is to apply for a licence to provide the financial service; and

– From 1 May 2012 to 31 December 2012 is the period for Australian Securities and Investments Commission (ASIC) to process licence applications. At the end of this period the registration of every registered person is cancelled.

The regulations also impose a range of disclosure obligations in particular circumstances in lieu of providing a Product Disclosure Statement. These obligations modify the Product Disclosure Statement requirements for ACCUs, EIEUs and carbon units in certain circumstances by requiring entities to provide clients with the website address of the Clean Energy Regulator and inform them of the information in the Regulator’s statement.

Print This Post

Posted 12th April 2012 by David Jacobson in Corporations Act, Environment

November 16, 2011

ACCC Carbon price claims – Guide for business

The ACCC has published Carbon price claims – Guide for business.

The guide reminds businesses that under the Australian Consumer Law a claim about the impact of a carbon price must be accurate and not mislead consumers (whether individuals or other businesses), must be able to be substantiated and be based on reasonable grounds if it contains a prediction about price increases connected to the impact of a carbon price.

Some examples of claims that will mislead customers are if:
• you represent that the whole amount of a price increase is due to a carbon price, when in fact only a proportion of the total price increase is attributable to a carbon price, or
• you overstate the impact of a carbon price.

Claims about the impact of a carbon price prior to 1 July 2012 (when the new scheme starts), should not wrongly suggest that a carbon price will affect the price of goods or services before that date.

The ACCC also advises caution about more general statements before 1 July 2012 such as:
• ‘Beat the Carbon Tax – Buy Now’
• ‘Our prices will be hit hard when the carbon price comes in’
• ‘Buy now before the carbon tax bites’.

Businesses should also take care not to breach anti-cartel laws if they engage in any discussions with competitors about the effects of a carbon price.

Print This Post

Posted 16th November 2011 by David Jacobson in Environment, Tax

November 9, 2011

Clean energy (carbon price) legislation package passed

The Clean Energy legislation has been passed by the Senate and is awaiting Royal Assent.

The Parliamentary Library has published the following helpful Bills Digests:

Clean Energy Bill 2011 [HTML] [PDF 2MB]
Clean Energy (Household Assistance Amendments) Bill 2011 [HTML] [PDF 888KB]
Clean Energy (Income Tax Rates Amendments) Bill 2011 and Clean Energy (Tax Laws Amendments) Bill 2011 [HTML] [PDF 90KB]
Clean Energy Regulator Bill 2011 [HTML] [PDF 736KB]
Climate Change Authority Bill 2011 [HTML] [PDF 602KB]

Print This Post

Posted 9th November 2011 by David Jacobson in Environment, Tax

September 15, 2011

Clean Energy Bills

The Clean Energy Bills package has been introduced into the House of Representatives with the aim of passage by both Houses by the end of November.

The package consists of:

Clean Energy Bill 2011
A Bill for an Act to encourage the use of clean energy, and for other purposes

Clean Energy (Charges—Excise) Bill 2011
A Bill for an Act to impose charges associated with the Clean Energy Act 2011, so far as those charges are duties of excise

Clean Energy (Charges—Customs) Bill 2011
A Bill for an Act to impose charges associated with the Clean Energy Act 2011, so far as those charges are duties of customs

Clean Energy (Consequential Amendments) Bill 2011
A Bill for an Act to deal with consequential matters arising from the enactment of the Clean Energy Act 2011, and for other purposes

Clean Energy (Customs Tariff Amendment) Bill 2011
A Bill for an Act to amend the Customs Tariff Act 1995, and for related purposes

Clean Energy (Excise Tariff Legislation Amendment) Bill 2011
A Bill for an Act to amend excise tariff legislation, and for related purposes

Clean Energy (Fuel Tax Legislation Amendment) Bill 2011
A Bill for an Act to amend fuel tax legislation, and for related purposes

Clean Energy (Household Assistance Amendments) Bill 2011
A Bill for an Act to amend the law relating to social security, family assistance, veterans’ entitlements, military rehabilitation and compensation, farm household support and aged care, and for related purposes

Clean Energy (Income Tax Rates Amendments) Bill 2011
A Bill for an Act to amend the Income Tax Rates Act 1986, and for related purposes

Clean Energy (International Unit Surrender Charge) Bill 2011
A Bill for an Act to impose a charge on the surrender of eligible international emissions units under the Clean Energy Act 2011

Clean Energy (Tax Laws Amendments) Bill 2011
A Bill for an Act to amend the law relating to taxation, and for related purposes

Clean Energy (Unit Issue Charge—Auctions) Bill 2011
A Bill for an Act to impose charges on the issue of carbon units issued as a result of an auction under the Clean Energy Act 2011, so far as those charges are neither duties of customs nor duties of excise

Clean Energy (Unit Issue Charge—Fixed Charge) Bill 2011
A Bill for an Act to impose fixed charges on the issue of carbon units under the Clean Energy Act 2011, so far as those charges are neither duties of customs nor duties of excise

Clean Energy (Unit Shortfall Charge—General) Bill 2011
A Bill for an Act to impose a charge on unit shortfalls under the Clean Energy Act 2011, so far as that charge is neither a duty of customs nor a duty of excise

Clean Energy Regulator Bill 2011
A Bill for an Act to establish the Clean Energy Regulator, and for other purposes

Climate Change Authority Bill 2011
A Bill for an Act to establish the Climate Change Authority, and for other purposes

Ozone Protection and Synthetic Greenhouse Gas (Import Levy) Amendment Bill 2011
A Bill for an Act to amend the Ozone Protection and Synthetic Greenhouse Gas (Import Levy) Act 1995, and for related purposes

Ozone Protection and Synthetic Greenhouse Gas (Manufacture Levy) Amendment Bill 2011
A Bill for an Act to amend the Ozone Protection and Synthetic Greenhouse Gas (Manufacture Levy) Act 1995, and for related purposes

Print This Post

Posted 15th September 2011 by David Jacobson in Business Planning, Environment

July 29, 2011

Clean Energy draft bills released

The Government has released exposure drafts of the 13 bills in the Government’s Clean Energy Legislative Package.

The Clean Energy Legislative Package includes four main bills – the Clean Energy Bill 2011 (which sets up the carbon price mechanism); the Clean Energy Regulator Bill 2011 (which establishes a regulatory body to administer the mechanism); the Climate Change Authority Bill 2011 (which establishes a new Authority to advise the government on the future design of the carbon price mechanism) and the Clean Energy (Consequential Amendments) Bill 2011.

The Clean Energy Legislative Package includes legislation on the income tax and goods and services tax (GST) treatment of units under the carbon pricing mechanism and legislation to give effect to the fuel tax arrangements announced as part of the Government’s Climate Change Plan.

Households, commercial on-road light vehicles, the agriculture, forestry and fishery industries and, for two years, the heavy on-road transport industry, will not face a carbon price on their transport fuel.

An additional bill which incorporates the Government’s household assistance measures announced is currently being drafted.

This legislation will be introduced into Parliament later this year.

Submissions on the Clean Energy Legislative Package can be sent to the Department of Climate Change and Energy Efficiency until 5pm on Monday, 22 August 2011.

Print This Post

Posted 29th July 2011 by David Jacobson in Environment

July 10, 2011

Carbon pricing, clean energy and tax implications

Prime Minister Julia Gillard has announced the Government’s plan for a clean energy future, household assistance and tax treatment of permits.

The carbon price will be $23 for each tonne of pollution beginning on 1 July 2012.

The price will rise by 2.5 per cent a year in real terms during a three-year fixed price period until 1 July 2015. The carbon price mechanism will then transition to an emissions trading scheme where the price will be determined by the market.

Australian households will receive assistance through increases in pensions, allowances and family payments and personal income tax cuts.

The tax‑free threshold will increase from $6,000 to $18,200 from 1 July 2012, and to $19,400 from 1 July 2015.

The lowest marginal rate will increase from 15% to 19%.

From $37001 to $80000 the tax rate will increase from 30% to 32.5%. (more)

Small business and farmers will be given assistance.

Former Reserve Bank Governor and former Treasury Secretary Bernie Fraser as Chairman of the new Climate Change Authority.

Print This Post

Posted 10th July 2011 by David Jacobson in Environment, Tax

December 20, 2009

Copenhagen Accord on climate change

The UN Climate Change Conference in Copenhagen has ended with an Accord:

We agree that deep cuts in global emissions are required according to science, and as documented by the IPCC Fourth Assessment Report with a view to reduce global emissions so as to hold the increase in global temperature below 2 degrees Celsius, and take action to meet this objective consistent with science and on the basis of equity.

Print This Post

Posted 20th December 2009 by David Jacobson in Environment

November 5, 2009

Eligible Emissions units as Financial Products: Draft Regulations

The Government has decided that eligible emissions units under the Carbon Pollution Reduction Scheme will be financial products for the purpose of the Corporations Act 2001 and the Australian Securities and Investments Commission Act 2001.

Treasury is consulting interested parties about draft regulations which contain adjustments to the financial product regime so that it fits the characteristics of eligible emissions units and does not involve unnecessary compliance costs.

Print This Post

Posted 5th November 2009 by David Jacobson in Corporations Act, Environment, Financial Services