There are two types of thresholds that determine which companies have an obligation under the
National Greenhouse and Energy Reporting Act 2007 (NGER Act): facility and corporate group thresholds.
The facility threshold are:
The corporate group thresholds are:
any of these thresholds are met, NGER obligations are triggered. For example, if a controlling corporation’s group consumes 105TJ of energy in a financial year, it will have triggered an NGER threshold, regardless of whether it does not produce emissions of 25kt or more.
Obligations under the
National Greenhouse and Energy Reporting Act 2007 (NGER Act) apply to controlling corporations only.
A controlling corporation is a 'constitutional corporation' that does not have an Australian incorporated holding company. It is usually the corporation at the top of the corporate hierarchy in Australia and can be a 'non-operational' holding company that does not handle day-to-day business. It can also be a foreign incorporated entity that operates directly in Australia without an Australian incorporated subsidiary.
If you are unsure whether your corporation is a 'constitutional corporation', you may wish to seek professional services advice to confirm its status.
A controlling corporation's group may consist of a controlling corporation only or it may include subsidiaries. Under the NGER Act, a 'subsidiary' has the same meaning as
section 46 of the
Corporations Act 2001 and is considered to be part of the controlling corporation's group.
It is important to correctly identify the members of your group because this determines which facilities your controlling corporation must report on.
In certain circumstances a controlling corporation can apply for a
documentasset:Guideline - Reporting transfer certificates to transfer its reporting obligations to another corporation (that has financial control over the facility).
Under a section 22X agreement, a controlling corporation and group member can transfer reporting obligations for a facility or facilities, from the controlling corporation, to the group member that has operational control over the relevant facility or facilities.
A facility is an
activity or series of activities that generate greenhouse gas emissions and produce or consume energy. Facilities:
The definition of a facility for the purposes of the NGER legislation is quite broad. The NGER Scheme is intended to cover a number of varied and complex situations. It is designed to provide corporations with a degree of flexibility in applying the definition of a facility to their own specific circumstances.
For example, a facility under the NGER Act might be a factory as well as transportation of goods outside the factory's boundaries, but still associated with the factory's activities. Other examples of facilities include electricity generators, primary production and manufacturing plants, mining, landfill and construction sites, retail outlets, air, rail, road and water transport, and electricity, gas or water supply.
For more information on defining a facility under the NGER Scheme see documentasset:NGER Defining facilities.
A person will have
operational control over a facility if they have the authority to introduce and implement any or all of the following for the facility:
more than one corporation has the authority to introduce and implement any or all of these policies, the corporation that has the
greatest authority to introduce and implement operating policies and environmental policies has operational control over the facility.
no one corporation has the greatest authority to introduce and implement these policies, a corporation can be nominated as having operational control over the facility. This occurs by filling in the
Application for declaration of facility form.
The agency can also declare a person as having operational control over a facility.
There are also situations where there may be
change in operational control, for example where a facility is sold part way through the year. In these circumstances each controlling corporation would report on the facility for the part of the year the facility was under the operational control of the controlling corporation or its group member. Note part year reporting does not apply where ownership of the controlling corporation or group member changes but operational control of a facility does not.
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