{"id":"C2004A04975","name":"Ozone Protection and Synthetic Greenhouse Gas (Manufacture Levy) Act 1995","slug":"ozone-protection-and-synthetic-greenhouse-gas-manufacture-levy-act-1995","collection":"act","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":"125 of 1995","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":38890,"registerId":"commonwealth-C2004A04975-current","compilationNumber":null,"startDate":"2026-04-01","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Short title","content":"#### 1 Short title\n\n This Act may be cited as the Ozone Protection and Synthetic Greenhouse Gas (Manufacture Levy) Act 1995.","sortOrder":0},{"sectionNumber":"2","sectionType":"section","heading":"Commencement","content":"#### 2 Commencement\n\n This Act commences on 1 January 1996.","sortOrder":1},{"sectionNumber":"2A","sectionType":"section","heading":"Definitions","content":"#### 2A Definitions\n\n In this Act:\n\n> amount includes a nil amount.\n\n> Import Levy Act means the Ozone Protection and Synthetic Greenhouse Gas (Import Levy) Act 1995.\n\n> Management Act means the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989.\n\n> medical equipment includes pharmaceutical equipment.","sortOrder":2},{"sectionNumber":"3","sectionType":"section","heading":"Interpretation","content":"#### 3 Interpretation\n\n (1) An expression used in this Act has the same meaning in this Act as it has in the Management Act.\n (2) Without limiting subsection (1), section 9 (references to scheduled substances and equipment) of the Management Act applies in relation to this Act in the same way as that section applies in relation to the Management Act.\n (3) In determining for the purposes of this Act whether a licence allows the licensee to carry out an activity, disregard any suspension of the licence.\n\n> Note: For the effect of a licence suspension, see subsection 19D(4) of the Management Act.","sortOrder":3},{"sectionNumber":"3A","sectionType":"section","heading":"Manufacture levy—SGGs","content":"#### 3A Manufacture levy—SGGs\n\n (1) If:\n (a) a controlled substances licence allows the licensee to manufacture SGGs; and\n (b) the licensee manufactures an SGG during a reporting period during which the licence is in force;\n levy is imposed on the licensee in respect of that manufacture.\n\n> Note: This subsection applies only in relation to the manufacture of SGGs that are bulk scheduled substances (see subsection 3(2) of this Act and subsection 9(1) of the Management Act).\n\n (2) Subsection (1) does not apply to the manufacture of an SGG in circumstances, or for a purpose, prescribed for the purposes of subsection 13(2) of the Management Act.\n (3) Subsection (1) does not apply to the manufacture of an SGG that is to be used for a purpose prescribed by the regulations.\n (4) For the purposes of this section, if a licence is in force for only part of a particular reporting period, that part is taken to be a reporting period.\n (4A) Subsection (4B) applies for the purposes of:\n (a) this section and any other section of this or any other Act that relates to this section; and\n (b) any regulations made under this or any other Act that relate to this section.\n (4B) The quantity of an SGG that is taken to be manufactured is the quantity actually manufactured reduced by the heel allowance percentage for the SGG.\n (5) The amount of levy imposed by subsection (1) on a licensee in respect of the manufacture of an SGG in a reporting period is the amount worked out using the following formula:\n ![Start formula Number of tonnes of the SGG times Prescribed rate end formula](image.002.png)\n where:\n\n> prescribed rate means the amount prescribed by the regulations for the purposes of this definition.\n\n (7) If:\n (a) levy is imposed by subsection (1) on a licensee in respect of the manufacture of an SGG; and\n (b) the Minister is satisfied that the SGG:\n (i) is to be used in medical equipment; or\n (ii) is to be used in the manufacture of medical equipment; or\n (iii) is to be used in equipment of a kind prescribed for the purposes of paragraph 13(4)(a) or (6)(a) of the Management Act; or\n (v) is to be used for a purpose prescribed by the regulations;\n the Minister may, by written notice given to the licensee, determine that the licensee is exempt from the levy.\n (9) In making a determination under subsection (7), the Minister must have regard to such matters as are specified in the regulations.\n (10) The Minister may, by writing, delegate the Minister’s power under subsection (7) to:\n (a) the Secretary; or\n (b) an SES employee or acting SES employee in the Department; or\n (c) an APS employee who holds, or is acting in, an Executive Level 2, or equivalent, position in the Department.\n\n> Note: Sections 34AA to 34A of the Acts Interpretation Act 1901 contain provisions relating to delegations.\n\n (11) In exercising a delegated power, the delegate must comply with any written directions of the Minister.\n (12) Before the Governor‑General makes regulations for the purposes of a provision mentioned in column 1 of an item in the following table, the Minister must be satisfied of the matter, or one or more of the matters, mentioned in column 2 of that item.\n\n```html\n

Matters the Minister must be satisfied of before regulations are made

Item

Column 1

Provision

Column 2

Matters

1

subsection (3)

(a) that it would be impracticable to impose levy on the manufacture of an SGG that is to be used for a purpose to be prescribed by those regulations; or

(b) that a purpose to be prescribed by those regulations is a medical, veterinary, health or safety purpose

2

the definition of prescribed rate in subsection (5)

that the effect of this Act and the Import Levy Act will be to recover no more than the Commonwealth’s likely costs of the kind mentioned in paragraph 65D(a), (b), (c) or (ca) of the Management Act, being costs that are unlikely to be offset by fees charged under the Management Act or regulations made under it

3

subparagraph (7)(b)(v)

(a) that it would be impracticable to require payment of levy imposed on the manufacture of an SGG that is to be used for a purpose to be prescribed by those regulations; or

(b) that a purpose to be prescribed by those regulations is a medical, veterinary, health or safety purpose

\n```","sortOrder":4},{"sectionNumber":"4","sectionType":"section","heading":"Manufacture levy—substances other than SGGs","content":"#### 4 Manufacture levy—substances other than SGGs\n\n (1) If:\n (a) a controlled substances licence allows the licensee to manufacture a substance or substances (other than an SGG); and\n (b) the licensee manufactures any such substance during a reporting period during which the licence is in force;\n then levy is imposed on the licensee in respect of that manufacture.\n\n> Note: This subsection applies only in relation to the manufacture of scheduled substances (other than SGGs) that are bulk scheduled substances (see subsection 3(2) of this Act and subsection 9(1) of the Management Act).\n\n (3) For the purposes of subsection (1), if a licence is in force for only part of a particular reporting period, that part is taken to be a reporting period.\n (3A) For the purposes of this section, the quantity of a substance that is taken to be manufactured is the quantity of the substance that is actually manufactured reduced by the heel allowance percentage for the substance.\n (4) The amount of levy imposed by subsection (1) on a licensee in respect of the manufacture of a substance other than an SGG in a reporting period is the amount prescribed, or worked out in accordance with a method prescribed, by the regulations for the purposes of this subsection.\n (5) Before the Governor‑General makes regulations for the purposes of subsection (4), the Minister must be satisfied that the effect of this Act and the Import Levy Act will be to recover no more than the Commonwealth’s likely costs of the kind mentioned in paragraph 65D(a), (b), (c) or (ca) of the Management Act.\n (6) For the purposes of subsection (5), disregard any costs that are likely to be offset by fees charged under the Management Act or regulations made under it.","sortOrder":5},{"sectionNumber":"5","sectionType":"section","heading":"Regulations","content":"#### 5 Regulations\n\n The Governor‑General may make regulations prescribing matters:\n (a) required or permitted by this Act to be prescribed by the regulations; or\n (b) necessary or convenient to be prescribed for carrying out or giving effect to this Act.","sortOrder":6}],"analysis":{"flash_summary":{"complexity_score":5,"scope_assessment":{"changed":false,"description":"The Act has remained focused on its original purpose of imposing a levy on the manufacture of ozone-depleting substances and synthetic greenhouse gases, without expansion beyond that core intent."},"complexity_factors":["Cross-references to the Management Act and Import Levy Act for definitions and scope","Multiple exemptions and exceptions with conditions","Formula for calculating levy using 'prescribed rate' set by regulations","Ministerial discretion to grant exemptions and delegated powers","Heel allowance percentage reduces quantity considered manufactured","Table of conditions for making regulations","Interpretation provisions incorporating other Acts"],"plain_english_summary":"This Act imposes a levy (a type of tax) on companies that manufacture certain gases that deplete the ozone layer or are synthetic greenhouse gases (SGGs). The levy applies only if the manufacturer holds a licence under the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989. The amount of levy is calculated per tonne of gas manufactured, at a rate set by regulations. The levy does not apply to gases manufactured for exempt purposes (e.g., medical equipment) or in circumstances prescribed by regulations. The Minister can also grant exemptions in certain cases. The levy is designed to recover the Commonwealth's costs of managing these substances, such as enforcement and administration. The Act works alongside a similar import levy Act."},"summary":{"complexity_score":6,"scope_assessment":{"changed":true,"description":"The Act's original 1995 scope focused primarily on ozone-depleting substances. Over time, SGGs (synthetic greenhouse gases like HFCs) were added as a distinct and now prominent category — reflecting the evolution of international obligations from the Montreal Protocol toward also addressing climate change impacts. The addition of Section 3A specifically for SGGs, with its own calculation formula and exemption framework, represents a meaningful expansion beyond the original ozone-protection focus."},"complexity_factors":["Relies heavily on definitions and provisions from two other Acts (the Management Act and Import Levy Act), requiring cross-referencing to understand fully","Dual regulatory regime covering two distinct chemical categories (SGGs and non-SGG scheduled substances) with different levy calculation methods","Multiple layers of exemptions — both automatic (regulatory) and discretionary (ministerial determination) — with different triggering conditions","Levy rates are not set in the Act itself but delegated to regulations, making the actual financial impact invisible from the Act alone","The 'heel allowance percentage' concept requires understanding of industrial chemical manufacturing processes","Ministerial satisfaction requirements before regulations can be made add a procedural constraint layer","Delegation provisions with compliance obligations add administrative complexity","Cost-recovery cap mechanism requires reading across both Acts and identifying specific paragraphs of the Management Act"],"plain_english_summary":"## What This Law Does\n\nThis Act imposes a **manufacturing levy** (a fee/tax) on Australian businesses that manufacture certain chemicals controlled under Australia's ozone protection and synthetic greenhouse gas laws.\n\n## Who Does It Affect?\n\n**Licensed manufacturers** of two categories of chemicals:\n1. **SGGs (Synthetic Greenhouse Gases)** — chemicals like HFCs and PFCs used in refrigeration, air conditioning, and similar industries, which contribute to climate change\n2. **Other controlled substances** — chemicals that damage the ozone layer (like HCFCs)\n\nTo be subject to this levy, a business must hold a **controlled substances licence** (a government permission to manufacture these chemicals) and actually manufacture these substances during a reporting period.\n\n## How the Levy Works\n\n- For SGGs: the levy is calculated by multiplying the **number of tonnes manufactured** by a **prescribed rate** set in regulations\n- For other substances: the amount is set or calculated under regulations\n- There's a **heel allowance** — a small percentage reduction in the measured quantity to account for residual chemical that can't practically be removed from containers\n\n## Exemptions — When You Don't Have to Pay\n\nThe levy may **not apply** if the chemical is manufactured for:\n- Use in **medical or pharmaceutical equipment**\n- Certain other equipment types specified in the parent law\n- Purposes prescribed in regulations (e.g., medical, veterinary, health or safety uses)\n\nThe Minister (or a delegated senior public servant) can also grant individual **exemption determinations** in writing for eligible manufacturers.\n\n## Why It Exists\n\nThe levy is designed to **recover the Commonwealth government's costs** of administering the ozone/greenhouse gas management scheme — things like licensing, compliance, and monitoring. Importantly, the law requires the Minister to be satisfied that levies collected (together with the companion import levy) won't exceed what the government actually spends running the scheme.\n\n## The Bigger Picture\n\nThis Act works alongside:\n- The **Import Levy Act** (same levy but for importers)\n- The **Management Act** (the main ozone/greenhouse gas law that sets up the licensing system)\n\nThink of it as a cost-recovery charge: if you're licensed to make these chemicals in Australia, you contribute to funding the regulatory system that governs them."},"kimi_summary":{"content_quality":"ok","complexity_score":5,"scope_assessment":{"changed":true,"description":"The original 1995 Act appears to have been focused on ozone-depleting substances. The current version has been significantly expanded to cover synthetic greenhouse gases (SGGs) — a much broader category of chemicals primarily regulated for climate change reasons rather than ozone protection. This represents a substantial expansion from the original environmental purpose (ozone layer protection) to include greenhouse gas management, reflected in the Act's title change and the addition of section 3A specifically for SGGs."},"complexity_factors":["Heavy reliance on definitions and concepts from the 'Management Act' (Ozone Protection and Synthetic Greenhouse Gas Management Act 1989) — section 3(1) imports all meanings from that Act","Cross-referencing to companion legislation — the Import Levy Act 1995 is referenced for cost-recovery calculations","Conditional logic with multiple exemptions: subsection 3A(2) and (3) create exceptions, and subsection 3A(7) creates a discretionary Ministerial exemption power","Delegated legislative power — the actual levy rates are not in the Act but left to regulations, with constraints (Minister must be satisfied of cost-recovery limits)","Nested definitions: 'prescribed rate' is defined by reference to regulations, which themselves are constrained by satisfaction requirements in the table at section 3A(12)","Technical accounting concepts: 'heel allowance percentage' and 'reporting period' (imported from Management Act) require external knowledge","Ministerial discretion subject to statutory criteria and delegation chain (SES/APS employees)","Section numbering gaps (subsections 3A(6) and (8) are missing) suggesting amendments over time"],"plain_english_summary":"This law puts a **tax (levy)** on companies that manufacture certain harmful chemicals in Australia.\n\n**What it does:**\n- Charges manufacturers a fee when they make **synthetic greenhouse gases (SGGs)** — chemicals that trap heat in the atmosphere and contribute to climate change.\n- Also charges manufacturers who make **ozone-depleting substances** (chemicals that damage the Earth's protective ozone layer).\n\n**Who it affects:**\n- Companies with a licence to manufacture these chemicals in Australia.\n- The levy doesn't apply if the chemicals are for certain medical, safety, or veterinary purposes, or if regulations specifically exempt them.\n\n**How the tax works:**\n- For SGGs: The levy is calculated as **(tonnes manufactured) × (prescribed rate set by regulations)**.\n- For other ozone-depleting substances: The amount is set entirely by regulations.\n- Manufacturers get a small deduction called a **\"heel allowance\"** — this accounts for the tiny amount of chemical that remains in containers and can't be removed.\n\n**Key exemptions:**\n- The Minister can grant exemptions for chemicals used in medical equipment or other specific purposes.\n- Manufacturing for certain prescribed purposes (like medical or safety uses) is exempt from the levy.\n\n**Why it matters:**\nThis law helps Australia meet international environmental commitments (like the Montreal Protocol on ozone protection and climate agreements). The money raised recovers government costs for managing and regulating these harmful substances — it's designed to be a **cost-recovery mechanism**, not a profit-making tax."},"issue_detection":{"absurdities":[{"type":"other","section":"3A(7)","severity":"medium","reasoning":"Section 3A(7)(b) lists subparagraphs (i), (ii), (iii), and then jumps to (v), with (iv) entirely absent. This creates a structural gap in the legislation. The table in subsection (12) also references subparagraph (7)(b)(v) directly, confirming (v) is intentional. The absence of (iv) suggests either a drafting error where a ground for exemption was deleted without renumbering, or an inadvertent omission, leaving a permanent logical void in the statutory sequence that could cause interpretive confusion.","confidence":0.9,"description":"Missing subparagraph (iv) in the exemption list"},{"type":"self_contradicting","section":"3A(3) and 3A(7)","severity":"medium","reasoning":"Section 3A(3) provides a blanket exemption from levy for SGGs manufactured for a purpose prescribed by regulations, with no levy ever imposed. Section 3A(7)(b)(v) provides a separate ministerial discretionary exemption for purposes prescribed by regulations. If a purpose is prescribed under both provisions, the manufacture would never attract levy under 3A(3) in the first place, rendering the 3A(7)(b)(v) exemption otiose for those purposes. The legislature appears to have created two parallel tracks for the same regulatory outcome without delineating when each applies, creating unnecessary administrative complexity and ambiguity about which pathway governs.","confidence":0.75,"description":"Dual overlapping exemption mechanisms for prescribed purposes create redundancy and potential conflict"},{"type":"other","section":"3A(4B)","severity":"low","reasoning":"Section 3A(4B) states the quantity 'taken to be manufactured' is the actual quantity reduced by the heel allowance percentage. The formula in 3A(5) refers to 'Number of tonnes of the SGG' without expressly stating this is the 3A(4B)-adjusted figure. While 3A(4A) attempts to extend 3A(4B)'s application broadly, the formula's plain language could be read as referring to actual tonnes manufactured, creating ambiguity about whether the heel allowance reduction is automatically incorporated into the levy calculation or requires additional interpretive steps.","confidence":0.65,"description":"The heel allowance percentage reduction applies to 'quantity taken to be manufactured' but the levy formula in 3A(5) references 'Number of tonnes of the SGG' without expressly incorporating 3A(4B)"},{"type":"impossible_compliance","section":"3(3)","severity":"medium","reasoning":"Section 3(3) directs that for the purposes of this Act, any suspension of a licence is to be disregarded when determining whether a licence 'allows' the licensee to carry out an activity. This means levy is imposed even during periods of suspension. However, if a licensee manufactures during a suspension period, they would be breaching the Management Act (per the referenced subsection 19D(4)), yet simultaneously attracting levy under this Act. This creates a perverse situation where a licensee is penalised by levy for activity that is simultaneously unlawful under another Act, effectively double-penalising suspended licensees if they comply with their suspension, while those who breach the suspension face both criminal/civil liability and levy.","confidence":0.8,"description":"Direction to disregard licence suspension for determining whether a licence 'allows' an activity conflicts with the practical reality that a suspended licence cannot be acted upon"},{"type":"circular_definition","section":"2A","severity":"low","reasoning":"The definition states 'medical equipment includes pharmaceutical equipment' but 'pharmaceutical equipment' is not itself defined in this Act or apparently incorporated by reference from the Management Act. This creates an extensional definition that expands the scope of 'medical equipment' to an undefined term, providing no genuine clarity. A licensee or administrator seeking to determine whether equipment qualifies for the exemption under 3A(7)(b)(i) or (ii) cannot determine what 'pharmaceutical equipment' means without external reference, defeating the purpose of the definition.","confidence":0.7,"description":"Definition of 'medical equipment includes pharmaceutical equipment' is circularly unhelpful without defining pharmaceutical equipment"}],"contradictions":[{"severity":"medium","section_a":"3A(3)","section_b":"3A(12) Item 1","confidence":0.72,"description":"Under 3A(3), regulations exempting manufacture for a prescribed purpose can only be made if the Minister is satisfied it would be impracticable to impose levy OR the purpose is medical/veterinary/health/safety. Under 3A(7)(b)(v), ministerial exemptions for prescribed purposes require the same gateway (per Item 3 of the table). However, the direct exemption in 3A(3) operates automatically via regulation, while 3A(7) requires case-by-case ministerial satisfaction. This means the same regulatory purpose prescription produces different legal consequences depending on the pathway, with 3A(3) conferring an automatic exemption and 3A(7)(b)(v) conferring only a discretionary one, despite identical preconditions for the enabling regulations."},{"severity":"low","section_a":"3A(1)","section_b":"3A(2)","confidence":0.68,"description":"Section 3A(1) imposes levy on all SGG manufacture under a licence during a reporting period. Section 3A(2) then carves out manufacture in circumstances or for purposes prescribed under Management Act s13(2). Because the exempting circumstances are defined entirely by reference to another Act's regulations, changes to those regulations automatically alter the scope of levy liability under this Act without any amendment to this Act. This creates a situation where the levy base is indirectly controlled by regulatory changes to the Management Act, potentially without the Ministerial satisfaction requirements in 3A(12) being engaged, contradicting the intent of the oversight mechanism in subsection (12)."},{"severity":"low","section_a":"4(5)-(6)","section_b":"3A(12) Item 2","confidence":0.6,"description":"Section 4(5) requires the Minister to be satisfied the combined Acts will recover 'no more than the Commonwealth's likely costs' of the relevant kind, with section 4(6) separately directing that costs offset by fees be disregarded. Section 3A(12) Item 2 combines both elements into a single integrated test. The structural difference means the two cost recovery tests, while substantively similar, operate through different mechanisms, potentially allowing different interpretations of when the cap is met for SGGs versus non-SGGs, creating an unintended asymmetry in the levy framework."}]}},"importantCases":[],"_links":{"self":"/api/acts/ozone-protection-and-synthetic-greenhouse-gas-manufacture-levy-act-1995","history":"/api/acts/ozone-protection-and-synthetic-greenhouse-gas-manufacture-levy-act-1995/history","analysis":"/api/acts/ozone-protection-and-synthetic-greenhouse-gas-manufacture-levy-act-1995/analysis","conflicts":"/api/acts/ozone-protection-and-synthetic-greenhouse-gas-manufacture-levy-act-1995/conflicts","importantCases":"/api/acts/ozone-protection-and-synthetic-greenhouse-gas-manufacture-levy-act-1995/important-cases","documents":"/api/acts/ozone-protection-and-synthetic-greenhouse-gas-manufacture-levy-act-1995/documents"}}