Repeal of the Carbon Tax - Impacts on Landfill/Waste

Repeal of the carbon tax – Impacts on landfill/waste

Landfill and waste facilities that accepted solid waste resulting in emissions above a thresholdduring 2012-13 or 2013-14 are required to report their emissions and pay a carbon tax. Carbon tax liabilities incurred up to 30 June 2014 must be met in full. However, from 1July2014,no new carbon tax liabilities will be incurred. Corporations operating these facilities will still need to report under the National Greenhouse and Energy Reporting Scheme (NGERS).

How are landfill and waste facilities affected under the carbon tax?

Landfill facilities that emitted 25,000 tonnes or more of carbon dioxide equivalent greenhouse gas emissions each year were liable to paya carbon tax.
Emissions from landfill waste are calculated and reported by corporations through NGERS.
The rules set out by NGERS (known as the Measurement Determination) state that there are no reportable emissions in the year that the waste is deposited.
Because of the slow deterioration of landfill waste, waste deposited today will continue to emit greenhouse gases for many years. Most landfill operators will have charged waste depositors (including council ratepayers) with a fee to reflect a future liability under the carbon tax.
The carbon tax did not apply to emissions from waste deposited before 1 July 2012 or any emissions that occur after 30 June 2014.

What changes now that the carbon tax is repealed?

Landfill waste facilities do not incur any new carbon tax liability. Landfill operators should not be charging a carbon tax component for waste deposited now that the carbon tax has been repealed.
Emissions reporting under NGERS will continue to apply in the same way that it did before the carbon tax was introduced.

How will the public benefit from the removal of the carbon tax from waste/landfill facilities?

The prices charged by landfill operators shouldnow reflect that the carbon tax no longer applies.
The ACCC are monitoring and will enforce reasonably expected price reductions across key sectors of the economy.
In addition to existing broad powers to take action for anti-competitive conduct, the ACCCnow has new powers to take action against certain entities that engage in price exploitation for one year following the repeal of the carbontax.
Landfill operators, currently only covered by the pre-existing provisions, may be included in the price exploitation provisions in the future by the Minister. Therefore, landfill operators should be aware of the provisions and ensure their prices reflect that the carbon tax no longer applies.
The ACCC will also enforce the prohibition on false or misleading representations made about the effect of the carbon tax repeal.
Penalties of up to $1.1 million for corporations and $220,000 for individuals will apply for both carbon tax related price exploitation and false or misleading carbon tax representations following repeal.

What will happen to landfills that participate in the Carbon Farming Initiative?

A number of landfill facilities, including at least two local councils, participate in the Carbon Farming Initiative. Australian Carbon Credit Units generated from these facilities will be able to be used until the final surrender deadline for 201314.
Liablelandfill facilities will be able to use Australian Carbon Credit Units to meet up to 100per cent of their carbon tax liability until the final surrender deadline for 201314.

More information

Clean Energy Future factsheet

National Greenhouse and Energy Reporting (Measurement) Determination 2008

Disclaimer

While reasonable efforts have been made to ensure that the contents of this publication are factually correct, the Commonwealth does not accept responsibility for the accuracy or completeness of the contents, and shall not be liable for any loss or damage that may be occasioned directly or indirectly through the use of, or reliance on, the contents of this publication.