• Change text size
• Skip to content

Equivalent carbon price

• About us
• Contact us

• Home
  • Atmosphere
  • Biodiversity
  • Coasts and marine
  • Heritage
  • Human settlements
  • Land
  • Living sustainably
  • Parks Australia
  • Water
  • EPBC Act

• Atmosphere
  • Air quality
  • Fuel quality
  • Ozone and Synthetic Greenhouse Gases
  • Publications and resources

• Ozone and Synthetic Greenhouse Gases
  • Legislation
  • Licences and reporting
  • Montreal Protocol
  • Ozone depleting substances (ODS)
  • Methyl bromide
  • National Halon Bank
  • Refrigeration and airconditioning
  • Synthetic greenhouse gases
  • Equivalent carbon price
  • Ozone publications

Equivalent carbon price for synthetic greenhouse gases

• Home
• Licence applications
• Payments
• FAQs
• Resources

Frequently asked questions

• General questions about the equivalent carbon price
• Information for importers
• Information for technicians
• Information for waste managers
• Information for consumers
• Exemptions to the equivalent carbon price

Information for importers

Last updated: 2 July 2012

What do the new arrangements mean for importers?

On 1 July 2012, new arrangements for importers of synthetic greenhouse gases commenced:

• a Synthetic Greenhouse Gases Controlled Substances Licence is required for any imports of HFCs, PFCs and sulfur hexafluoride (SF6) in bulk gas form. The up-front application fee will remain at $15,000; and
• an Ozone Depleting Substance/Synthetic Greenhouse Gases Equipment licence (previously a Pre-Charged Equipment Licence) is required for imports of any products containing any of these gases. The up-front application fee will remain at $3,000, with the same partial waiver to $400 for qualifying one-off low-volume importers.

For both licence categories, the import levy is payable quarterly, and includes two components:

(i) a cost-recovery component of $165 per metric tonne imported, and

(ii) an equivalent carbon price.

Applications can now be made for these licences.

An online calculator is available to allow importers to easily calculate the total levy payable for any proposed imports.

• Import Levy and Equivalent Carbon Price Calculator

How much is the import levy?

The levy payable for an import of synthetic greenhouse gases, or of products containing synthetic greenhouse gases, will consist of two elements:

• the new equivalent carbon price for the synthetic greenhouse gases, and
• the existing cost recovery component.

For most imports, the levy is based on a simple multi-step calculation.

Steps 1-2 identify the equivalent carbon price component of the levy:

Step 1. Multiply the number of metric tonnes of gas to be imported, by the global warming potential of the gas. The various synthetic greenhouse gases each have a different global warming potential. A list is provided in section 2(C) below.

Step 2. Then, multiply the answer from Step 1 by the applicable charge under the carbon pricing mechanism.

The applicable charge for applying an equivalent carbon price will increase annually over the next three years. During this period, the applicable charge will be:

• $23.00 on 2012-13;
• $24.15 in 2013-14; and
• $25.40 in 2014-15.

Step 3 then identifies the amount of the cost recovery component of the levy:

Step 3. Multiply the number of metric tonnes of the gas by $165.

Step 4 calculates the total levy payable for the import:

Step 4. Add the answers from Steps 2 and 3 together to identify the total payable levy.

An online calculator is provided on this website to allow importers to easily determine the levy payable for each import.

In some cases, synthetic greenhouse gases are imported in blends with other substances, such as HCFCs or hydrocarbons. Another calculation is used to determine the levy payable for such imports, and is described on the same page as the calculator.

• Import Levy and Equivalent Carbon Price Calculator

Does the goods and services tax (GST) apply to the equivalent carbon price on synthetic greenhouse gases?

The equivalent carbon price that will be payable under the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989, for the import or manufacture of synthetic greenhouse gases and products containing such gases, will not be subject to the GST.

GST and the equivalent carbon price

• GST does not apply to payments of taxes, fees and charges, except those taxes, fees and charges excluded by Division 81 of the GST Act and Regulation. If a payment, or the discharging of a liability to make a payment, of an Australian tax is not treated as the provision of consideration, the payment will not be subject to GST. An Australian tax is a tax (however described) imposed under a law of the Commonwealth, a State or a Territory.
• When enacted, the amendments entering into force under the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 will be a law of the Commonwealth which will impose the equivalent carbon price. The equivalent carbon price is an Australian tax. However, it is not of a kind of tax which is excluded by the GST Act or a regulation. Therefore, a payment, or the discharging of a liability to make a payment, of the equivalent carbon price will not be subject to GST.
• A tax, fee or charge incurred by an entity, like other things it acquires, is a business cost for that entity. In subsequent supplies made by the entity, the tax, fee or charge may become part of the pricing and that cost may be included in the calculation to arrive at the total value of the supply.

Supply chain

• For transactions in the supply chain, the normal GST treatment that applies currently will continue to apply after the consequential amendments are passed. While GST is paid at each step in the supply chain, businesses don't actually bear the economic cost of the tax. This is because they include GST in the price of the goods and services they sell and can claim credits for most GST included in the price of goods and services they buy. The cost of GST is borne by the final consumer, who can't claim GST credits.

This information is not tax advice. Companies requiring information on how the law may apply to their company's particular circumstances should approach the Australian Tax Office (www.ato.gov.au) through the usual rulings process.

When will I have to pay the levy?

The levy will be payable 60 days after the end of each calendar quarter in which the gases have been imported.

For example:

• for gases or products imported between 1 July 2012 and 30 September 2012, the levy would be payable by 60 days after 30 September 2012: that is, by 29 November 2012.
• For imports between 1 October 2012 and 31 December 2012, the levy would be payable by 1 March 2013.

• More information on making a payment.

When can I apply for an import licence under the new arrangements?

Application forms for import licences applying these new arrangements are now available under Licence applications.

What if I already have an import licence?

For synthetic greenhouse gases in bulk gas form:

Some importers have already been granted Synthetic Greenhouse Gases Controlled Substances licences before 1 July 2012, permitting them to import bulk HFCs and PFCs up to 31 December 2013.

From 1 July 2012, holders of these licences:

• will also be permitted to import SF6 in bulk form; and
• will be required to pay the new levy, incorporating the equivalent carbon price, as described in Question 2(b) above.

For synthetic greenhouse gases in pre-charged equipment:

Similarly, some importers have been granted Pre-Charged Equipment licences before 1 July 2012, permitting them to import products containing HFCs for up to two years from the date on which the licences were granted.

From 1 July 2012, holders of these licences:

• will also be permitted to import products containing PFCs or SF6; and
• will be required to pay the new levy, incorporating the equivalent carbon price, as described in Question 2(b) above.

For both these categories of licences, these licence expansions will apply automatically, and the licence holders will not need to apply for a new licence or to vary their existing licences.

Do I need to be a member of Refrigerant Reclaim Australia or another approved product stewardship scheme?

Importers of HFCs and PFCs in bulk and refrigerant and air-conditioning equipment are currently required to be a member of an approved product stewardship scheme before they will be granted a licence. Refrigerant Reclaim Australia (www.refrigerantreclaim.com.au) is currently the only approved product stewardship scheme.

Importers of SF6 and equipment other than refrigerant and air-conditioning equipment are currently not required to be a member of an approved product stewardship scheme before being granted a licence.

Membership requirements are expected to be reviewed. Industry consultation will form part of the review process.

Industry consultation will also form part of the development of the destruction of waste synthetic greenhouse gases and ozone depleting substances scheme, which will commence from 1 July 2013.

What is the synthetic greenhouse gas levy export refund scheme?

Under the changes to the Ozone Protection and Synthetic Greenhouse Gas Management legislation, Controlled Substances licensees and Synthetic Greenhouse Gases Equipment licensees are able claim a refund of the equivalent carbon price paid on synthetic greenhouse gases through the levy export refund scheme. The export refund scheme allows for the fact that synthetic greenhouse gases that are exported from Australia do not form part of Australia's greenhouse gas emission inventory.

Licensees can claim an export refund if they are able to demonstrate that an equivalent or greater amount of synthetic greenhouse gases has been imported in the previous 12 months, the equivalent carbon price on the synthetic greenhouse gases has been paid, and that the synthetic greenhouse gases have been exported.

Only licensees will be eligible to claim a refund, which they can do on their own behalf, or on behalf of parties who purchase synthetic greenhouse gases directly from them and subsequently export some or all of the synthetic greenhouse gases.

Licensees will be able to apply for a refund of the carbon levy they have paid on a quarterly basis.

Licensees applying for a refund will be required to provide evidence of import, export, species of gas, and the levy amount paid on the gas. This evidence must be retained for at least five years.

• Fact sheet - Synthetic greenhouse gas levy export refund scheme

Reporting breaches of the Act

Any information about the acquisition, import, export, trading or use of gas that may not comply with the requirements of the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 can be reported to the department by free call 1800 803 772.

Any information reported to the department is highly regarded and will be held in strict confidence.

How can importers stay informed?

If you wish to receive updates about the equivalent carbon price for synthetic greenhouse gases you can subscribe to our News updates.