Application forms to opt-in for off-road liquid fuels are now available

15 Feb 2013Archived News Climate Change Matters

The application forms for companies choosing to be Designated Opt-in Persons (DoiP) and manage their own carbon liability for off-road liquid fuel consumption recently became available on the Clean Energy Future website. These must be submitted by 2 April 2013 in order to be eligible for the FY2014 reporting year.

Who should opt-in?

A large liquid fuel user (who is not already a liable entity) should consider opting-in where the annual spend on liquid fuels is approximately $10 million or higher.

Liable entities under the Clean Energy Act with significant liquid fuel consumption should opt-in.

There are significant cash flow benefits to opting in

The Opt-in Scheme under the Clean Energy Act allows liable entities and large users of off-road liquid petroleum fuels (eg. diesel, petrol, aviation fuel) to take on an emissions liability for that fuel under the carbon pricing mechanism rather than paying the equivalent carbon price “indirectly” through the fuel tax or excise systems.

The deadline for opting-in for FY2014 is 2 April 2013, so quick action is needed to access the following benefits:

  • Cash flow benefit – the carbon liability for the fuel consumed only needs to be paid at the end of the year (75% in June and the remainder by the following February) whereas you pay the carbon price as you go via the fuel tax or excise system.

  • Market benefit – the carbon price paid via the fuel tax or excise system will be based on the fixed permit price in the initial period and then an average market price after that. By taking on and managing your own liability, there should be an opportunity to acquire lower priced permits (eg permits generated under the Carbon Farming Initiative, international permits or auctioned permits when the fixed price period ends).

Next steps:

  • Develop a more detailed business case for opting in as required for internal approvals and seek internal legal confirmation of registration processes.

  • Register as a liable entity under NGER (if applicable).

  • Submit application(s) to register with the Regulator as a Designated Opt-in Person (DOIP) for liquid fuels by 2 April 2013.

  • Open an ANREU (Australian National Registry of Emissions Units) account to receive and trade permits by 1 May 2013.


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