Pay unit shortfall charge if required

 

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The Clean Energy Act 2011 has been repealed.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.

Contents

If you do not surrender enough eligible emissions units to satisfy your liability by 16 June 2014 (if you have an interim emissions number) or 2 February 2015, you will incur a unit shortfall charge.

The unit shortfall charge is calculated as the difference between the liability and the number of units surrendered by the deadline, which is then multiplied by 130 per cent of the applicable fixed charge. For 2013-14 financial year the unit shortfall charge is $31.40 (rounded) per unit in shortfall.

A unit shortfall charge is payable on the sixth business day after the surrender deadlines.

Liable entities that fail to pay the unit shortfall charge by the due date will be subject to a late payment penalty equal to 20 per cent per year of the value of the outstanding shortfall charge.

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How will I know if I have incurred a shortfall charge?

If you have incurred a shortfall charge you will receive a notice of assessment detailing the final unit position, including any applicable charges, as soon as practicable after the surrender deadline.

You can log in to your ANREU account at any point to review your current liability position in your unit position statement. This statement will indicate if units remain outstanding against the relevant interim emissions number or emissions number.

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Estimation error unit shortfall

If you reported an IEN to the Clean Energy Regulator during the provisional surrender period and used a reasonable estimate under section 126(4) of the Clean Energy Act 2011, you may incur an estimation error unit shortfall charge if you have underestimated your IEN.

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