Environment Minister Greg Hunt has been consulting with the HVAC&R industry on the removal of the carbon tax.
Hunt met with Steve Anderson from the Air Conditioning and Refrigeration Equipment Manufacturers Association (AREMA) and Greg Picker from Refrigerants Australia (RA).
Since winning the election the Federal Government has moved quickly to begin the process of removing the tax. (For a detailed timeline outlining the removal of the tax turn to page 14).
“The government is absolutely committed to the removal of the tax, and it is our firm intention that it goes on July 1 next year,” Hunt said.
“However, we are aware of the particular complexities this tax has on the air conditioning and refrigeration industries, and will work closely with industry to minimise any disruption and manage any inintended consequences.”
AREMA’s Steve Anderson said there have been concerns from some sections of industry that sudden removal of the tax could lead to difficulties in the supply chain, as companies try to hold minimal stock in the lead up to its removal.
He said this is further complicated by the Ozone Protection and Synthetic Greenhouse Gas Management Act, as it has a ‘unique’ definition of ‘imports’ which requires an eight week lag in the supply chain which doesn’t allow for a timely response to shortages.
“Industry has suggested minor modifications to the Act which would overcome this problem; the Minister believes this approach does have merit and has asked the department to examine the proposal,” Anderson said.
“While we are keen to see the tax removed we also recognise the need for HFCs to be regulated and the need to continue industry efforts to reduce emissions.”
Refrigerant Australia’s Greg Picker said the most effective way to manage the phase-down of HFCs is via the Montreal Protocol framework.
“Using this approach, along with minor domestic legislative changes, we can repeat the success we had with the transition away from CFCs, and now HCFCs,” Picker said.
“We were certainly encouraged by the Minister’s response and his interest in the practicalities of the industry.
“We look forward to working with the government to deliver cost-effective, quantifiable and mandated emissions reductions.”