Under the Clean Energy Act 2011, large users of specified taxable liquid fuels can choose to manage their carbon price liability through the carbon pricing mechanism rather than through the fuel tax or excise systems under the operation of the Australian Taxation Office (ATO).
By opting in, the fuel emissions of those companies will be directly covered by the carbon pricing mechanism and won’t face an equivalent carbon price through the fuel tax.
Opting in is voluntary and businesses should make their own assessment on whether to opt-in to the carbon pricing mechanism. This may include seeking professional advice.
The Opt-in Scheme has been set up so that a person, the designated opt-in person (DOIP), can manage the taxable fuel liabilities of a GST group, GST joint venture, or for themselves.
Under the Opt-in Scheme, the DOIP is liable for the potential emissions embodied in liquid fuel for which the GST group, GST joint venture or they have a fuel tax credit entitlement. Once a DOIP has been declared, they will remain opted-in for the complete financial year.
The opportunity to opt-in to the carbon pricing mechanism is available from the 2013–14 financial year. To opt-in, you must apply to be declared a DOIP with the Clean Energy Regulator by midnight 2 April 2013 EDST.
See the forms and calculators page on the Clean Energy Regulator website for the application form. Further guidance material is also available on the website.
If you need any further information please contact the Clean Energy Regulator.