REPEAL OF THE CARBON TAX – TREATMENT OF SYNTHETIC GREENHOUSE GASES
The carbon tax repeal legislation received the Royal Assent on 17 July 2014 and the bills as part of
this package are now law, with effect from 1 July 2014. This means that the equivalent carbon tax on
synthetic greenhouse gases no longer applies and the costs associated with re-gassing refrigeration
and air-conditioning equipment will be lower.
Information for licensed importers of synthetic greenhouse gases and equipment containing these
gases is available at: www.environment.gov.au/protection/ozone/licences
How are synthetic greenhouse gases treated under the equivalent carbon tax?

During 2012-13 and 2013-14, synthetic greenhouse gases had an equivalent carbon tax
applied through the Ozone Protection and Synthetic Greenhouse Gas Management
legislation.

Gases covered were hydrofluorocarbons, perfluorocarbons, sulfur hexafluoride, and any
equipment or products which contain these gases were also covered, with limited
exemptions.
How much was the equivalent carbon tax on synthetic greenhouse gases?

The tax per tonne of synthetic greenhouse gas was based on the carbon tax and the
carbon dioxide equivalence for each gas.
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
For example R134a, a common refrigerant gas used in domestic refrigeration and air
conditioning, has a global warming potential 1,300 times that of carbon dioxide. During
2013-14, importers paid an equivalent carbon tax of $31,400 per tonne on the import of
this gas.
Removing the carbon tax will lower the cost of re-gassing refrigeration and air-conditioning
equipment.
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For a typical small supermarket refrigeration system this is a saving of over $10,000.
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For a beer cooling system at a hotel or club this is a saving of $3,100.
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For a domestic split system air-conditioner this is a saving of $83.
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For a passenger motor vehicle this is a saving of $19.
When did the equivalent carbon tax on synthetic greenhouse gases end?

Now that carbon tax repeal is law, businesses will not incur new equivalent carbon tax
liabilities on synthetic greenhouse gases imported or manufactured from 1 July 2014.

Equivalent carbon tax liabilities incurred for imports and manufacture up to 30 June 2014
must be met in full.
How will the Government ensure lower prices now that the carbon tax is repealed?

The ACCC will monitor and enforce reasonably expected price reductions across key
sectors, particularly the electricity, gas and synthetic greenhouse gas sectors.

The ACCC will also have, for one year following the repeal of the carbon tax, new powers
to take action against businesses that engage in carbon tax-related price exploitation, or
that make false or misleading claims about the effect of the carbon tax repeal on prices.
These new provisions complement the existing provisions of the Australian Consumer Law
that prohibit misleading and deceptive conduct and false or misleading representations.

These new provisions require companies supplying synthetic greenhouse gases to pass
on all cost savings associated with repeal of the carbon tax.
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Penalties of up to $1.1 million for corporations and $220,000 for individuals will apply
for carbon tax-related price exploitation following the repeal.
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Bulk synthetic greenhouse gas importers can be penalised 250 per cent of any
cost savings from the carbon tax repeal that they do not pass on to customers;
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Bulk synthetic greenhouse gas importers will be required to substantiate their cost
savings to the ACCC.
How will Australia continue meet its international obligations to reduce ozone depleting
substances and synthetic greenhouse gases?

The ‘synthetic greenhouse gas cost recovery levy’ will continue to apply at $165 per metric
tonne. The levy funds the Ozone Protection and Synthetic Greenhouse Gas Programme to
reduce emissions of ozone depleting substances and synthetic greenhouse gases.

The recovery and destruction of ozone depleting substances and synthetic greenhouse
gases will continue after 30 June 2014:
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Refrigerant Reclaim Australia’s refrigerant recovery and destruction program, which
was established by industry in 1993, will continue to operate;
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Membership of Refrigerant Reclaim Australia will remain a licence condition for
refrigerant importers;
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The legal requirement for technicians to return recovered waste refrigerants for
disposal will remain; and
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The offence provision for emissions of refrigerants not in accordance with the
regulations will remain.
More information

equivalent carbon price for synthetic greenhouse gases
www.environment.gov.au/protection/ozone/synthetic-greenhouse-gases/equivalentcarbon-price

ACCC – carbon tax repeal
www.accc.gov.au/business/carbon-tax-repeal
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.
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