CLEAN ENERGY ACT 2011 (NO. 131, 2011) - SECT 133 Unit shortfall
CLEAN ENERGY ACT 2011 (NO. 131, 2011) - SECT 133
Unit shortfallScope
(1) This section applies if:
(a) a person is a liable entity for an eligible financial year (the relevant eligible financial year ); and
(b) the relevant eligible financial year is a flexible charge year.
(2) If the number worked out using the formula in subsection (5) exceeds zero:
(a) the person has a unit shortfall under this section for the relevant eligible financial year; and
(b) the number of units in that shortfall is equal to the number worked out using that formula.
Note: Unit shortfall charge is imposed by whichever of the following is applicable:
(a) Part 3 of the Clean Energy (Charges--Excise) Act 2011 ;
(b) Part 3 of the Clean Energy (Charges--Customs) Act 2011 ;
(c) the Clean Energy (Unit Shortfall Charge--General) Act 2011 .
(3) If the number worked out using the formula in subsection (5) is zero, the person does not have a unit shortfall under this section for the relevant eligible financial year.
(4) If the number worked out using the formula in subsection (5) is less than zero:
(a) the person has a surplus surrender number for the relevant eligible financial year; and
(b) the surplus surrender number is equal to the number worked out using that formula (expressed as a positive).
Formula
(5) The formula is as follows:
where:
"emissions number" means the person's emissions number for the relevant eligible financial year.
number of units surrendered before the end of 1 February means the number of eligible emissions units the person surrendered, in relation to the relevant eligible financial year, before the end of 1 February next following the relevant eligible financial year.
"surplus surrender number" means the surplus surrender number (if any) of the person for the previous eligible financial year, so long as the previous eligible financial year is a flexible charge year.
Borrowing limit
(6) If:
(a) before the end of 1 February next following the relevant eligible financial year, the person surrendered, in relation to the relevant eligible financial year, carbon units (the borrowed units ) that have a vintage year that next follows the relevant eligible financial year; and
(b) the number of borrowed units exceeds 5% of the person's emissions number for the relevant eligible financial year;
this section has effect as if:
(c) the person had not, before the end of that 1 February, surrendered, in relation to the relevant eligible financial year, the number of borrowed units that equals the excess; and
(d) the person had, before the end of 1 February next following the next eligible financial year, surrendered, in relation to the next eligible financial year, the number of borrowed units that equals the excess.
Eligible international emissions units--surrender limit
(7) If:
(a) the relevant eligible financial year is:
(i) the eligible financial year beginning on 1 July 2015; or
(ii) any of the next 4 eligible financial years; and
(b) before the end of 1 February next following the relevant eligible financial year, the person surrendered, in relation to the relevant eligible financial year, eligible international emissions units; and
(c) the number of eligible international emissions units exceeds 50% of the emissions number of the person for the relevant eligible financial year;
this section has effect as if:
(d) the person had not, before the end of that 1 February, surrendered, in relation to the relevant eligible financial year, the number of eligible international emissions units that equals the excess; and
(e) the person had, before the end of 1 February next following the next eligible financial year, surrendered, in relation to the next eligible financial year, the number of eligible international emissions units that equals the excess.
Reduction of surplus surrender number
(8) If:
(a) apart from this subsection, the person has a surplus surrender number for the previous eligible financial year; and
(b) the previous eligible financial year is a flexible charge year;
and the following conditions are satisfied in relation to one or more eligible international emissions units:
(c) before the end of 1 February next following the previous eligible financial year, the person surrendered, in relation to the previous eligible financial year, those units;
(d) assuming that:
(i) those units had not been surrendered in relation to the previous eligible financial year; and
(ii) the person had, on 1 February next following the relevant eligible financial year, purported to surrender, in relation to the relevant eligible financial year, those units;
the purported surrender of those units would have breached regulations made for the purposes of subsection 123(1);
then:
(e) if the person would not have had a surplus surrender number for the previous eligible financial year if those units had not been surrendered in relation to the previous eligible financial year--subsection (5) has effect as if the person did not have a surplus surrender number for the previous eligible financial year; or
(f) if the person's surplus surrender number for the previous eligible financial year would have been reduced if those units had not been surrendered in relation to the previous eligible financial year--subsection (5) has effect as if the person's surplus surrender number for the previous eligible financial year were reduced accordingly.