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- Exemptions to the equivalent carbon price
Exemptions to the equivalent carbon price
Last updated: 2 July 2012
The Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 and related legislation only allow exemptions in certain circumstances where it is impracticable to apply the equivalent carbon price, or where synthetic greenhouse gases are used for a 'medical, veterinary, health or safety' purpose.
Medicines, veterinary medicines, medical devices, veterinary devices and imported foam and foam products are exempt.
The Government is currently considering a proposal to exempt blast bags. Information will be available through the website once a decision is made.
Why did the government decide to exempt medicines, veterinary medicines, medical devices and veterinary devices?
Medicines, veterinary medicines, medical devices and veterinary devices have been exempted as the administrative costs and regulatory burden of collecting an equivalent carbon price for the small amount of gases contained in medicines, veterinary medicines, medical devices and veterinary devices outweigh the environmental benefits of applying an equivalent carbon price levy. The government also does not want to discourage people from accessing necessary and life-saving medicines.
Most products contain synthetic greenhouse gases in an easily measurable form, for example, in a cylinder within a refrigerator or car refrigeration system.
However, during the manufacture of foam (including foam products), synthetic greenhouse gases are sometimes used and trapped in pockets within the foam. This makes it impracticable to detect the presence, or type and amount of synthetic greenhouse gas present, without expensive and destructive testing, or seeking advice from the original manufacturer. Some of these products are also manufactured without using a synthetic greenhouse gas.
For these reasons, it is currently impracticable to apply an equivalent carbon price to imported foams.
Exemptions of other products will be considered on a case by case basis, in accordance with the legislation. Applications must be made in writing to the Hon Tony Burke MP, Minister for Sustainability, Environment, Water, Population and Communities or Senator the Hon Don Farrell, Parliamentary Secretary for Sustainability and Urban Water, and sent to the following address:
Environment Standards Branch
Department of Sustainability, Environment, Water, Population and Communities
GPO Box 787
CANBERRA ACT 2601
Applicants will need to provide substantial information to support a case for an exemption under the Ozone Protection and Synthetic Greenhouse Gas Management legislation.
Carbon Tax Repeal
The Australian Government will abolish the carbon tax, including the equivalent carbon price on synthetic greenhouse gases, from 1 July 2014.
Licensing and levy exemptions
The government announced on 14 May 2013 that it intends to exempt medicines, veterinary medicines, medical devices and veterinary devices from the licensing and levy provisions of the legislation.
This exemption will come into affect once changes to regulations under the Ozone Protection and Synthetic Greenhouse Gas legislation are made.
Amendments to Ozone legislation
From 1 July 2012, amendments to Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 will extend licensing controls.
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