Joint ventures

Carbon pricing mechanism repeal

The Clean Energy Act 2011 has been repealed. This abolishes the carbon pricing mechanism from 1 July 2014. Liable entities must still meet their carbon price obligations for the 2013-14 financial year.

Content on the Clean Energy Regulator website will be progressively updated to reflect these changes. More information can be found on the carbon pricing mechanism repeal page.

Where an unincorporated joint venture has a facility covered under the Clean Energy Act 2011, specific rules apply to the treatment of liability for that facility's emissions. These rules depend on whether or not there is a clear operator of the facility.

An entity is liable for a share of the emissions of a facility if:

  • they are a participant in an unincorporated joint venture which has a facility and it is not clear who has operational control of the facility—this is a mandatory designated joint venture, or
  • they are a participant in an unincorporated joint venture which has a facility operated exclusively for the joint venture (by the entity or by someone else), where none of the participants are individuals and we have declared the joint venture a declared designated joint venture.

A designated joint venture is considered to have a facility where it can be established that the joint venture is sufficiently related to the facility for the participants to be liable (even if the participants do not formally own the facility).

Participants in a mandatory designated joint venture must notify us within 30 days of a mandatory joint venture coming into existence.

Participants in a joint venture that meets the requirements of a declared designated joint venture may apply to us to be a declared designated joint venture.

Such notifications or applications must be accompanied by an application for a 'participating percentage determination'. We must make a participating percentage determination to determine each participant's share of the economic benefits of the joint venture and consequently each participant's share of the liability for the facility's emissions.

See our forms and calculators page for the relevant application forms and guidance.

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