The federal government's ozone and synthetic gas team director, Pat McInerney, had the impossible task of outlining the complicated process likely to take place with the repeal of the carbon tax.
With the legislation still waiting to pass the senate, McInerney provided a number of scenarios, options and timelines which all depend on the actual date of repeal and whether it is passed before November 2014 or after that date.
There was also confusion surrounding overpayment refunds and whether legislation will be back-dated.
Participants at the ARBS seminar didn't hesitate to express their concern about the ongoing uncertainty and murky political climate that has seen refrigerant prices and supply lines change drastically in the past few years.
The audience made it clear that a policy framework that is consistent and can provide clear direction is what the industry desperately needs.
It was at this point that Refrigerants Australia executive Greg Picker confirmed that a review of the ozone and synthetic greenhouse gas legislation could be in the works with an announcement likely in coming weeks.
“We have been lobbying hard towards this goal and there are favourable whispers about that could see a review announced in coming weeks,” he said.
“A review would provide certainty for industry and would include an extensive consultation period.”
While McInerney said he wasn't in a position to confirm news of a review, the process would incorporate everyone allowing all sections of industry to participate.
It is also likely the federal government will need to make an announcement prior to July 1, 2014,
confirming the carbon tax repeal process as there are plenty of unanswered questions that need to be finalised before the new financial year.
While the government is committed to removing the carbon tax, McInerney said the cost recovery levy of $165 per tonne will remain. The levy has been in place since 1995.
He said imports in the quarter prior to July 1 will be invoiced and must be submitted to the Environment Department by July 15, 2014.
Moreover, the carbon tax must be paid by August 29, 2014.
“The arrangements post-July 1 will depend on the exact legislation, I really cannot give a definitive view at this stage,” McInerney said.
“If the repeal legislation passes before November and is effective from July 1 you will still need to report the July to September quarter by October 15; that invoice will only cover the $165 levy not the carbon tax.
“The timing will be critically important. If the legislation passes in November and invoices have already been issued, we will just have to re-issue them.
“The closer it gets to November the more difficult it will be.”
If the repeal legislation is passed before November 2014 it is likely to be backdated to July 1.
The other option is that it is passed after November, and backdated to July 1, 2014.
However, McInerney said there is industry concern about back-dating the legislation.
“The only other alternative is to make it effective from some date in the future,” he said.
One audience member asked if there is a Plan B if the repeal legislation doesn't make it through the Senate.
“There is enough soundings from minor parties to suggest the tax will be removed,” McInerney said.
The export refund scheme will continue for 18 months after the repeal of the carbon tax.
“This will give everyone sufficient time to finalise exports,” he said.
“Importers will be able to claim a refund of the carbon tax for gas that is exported within 12 months of import.
“Importers must lodge refund claims before January 1, 2016.”
