{"id":"C2010A00071","name":"Renewable Energy (Electricity) (Small-scale Technology Shortfall Charge) Act 2010","slug":"renewable-energy-electricity-small-scale-technology-shortfall-charge-act-2010","collection":"act","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":"71 of 2010","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":8156,"registerId":"commonwealth-C2010A00071-current","compilationNumber":null,"startDate":"2026-03-30","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 Renewable Energy (Electricity) (Small‑scale Technology Shortfall Charge) Act 2010.","sortOrder":0},{"sectionNumber":"2","sectionType":"section","heading":"Commencement","content":"#### 2 Commencement\n\n (1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.\n\n```html\n

Commencement information

Column 1

Column 2

Column 3

Provision(s)

Commencement

Date/Details

1. Sections 1 and 2 and anything in this Act not elsewhere covered by this table

The day this Act receives the Royal Assent.

28 June 2010

2. Sections 3 to 7

At the same time as Part 1 of Schedule 1 to the Renewable Energy (Electricity) Amendment Act 2010 commences.

1 January 2011

\n```\n\n> Note: This table relates only to the provisions of this Act as originally passed by both Houses of the Parliament and assented to. It will not be expanded to deal with provisions inserted in this Act after assent.\n\n (2) Column 3 of the table contains additional information that is not part of this Act. Information in this column may be added to or edited in any published version of this Act.","sortOrder":1},{"sectionNumber":"3","sectionType":"section","heading":"Definitions","content":"#### 3 Definitions\n\n An expression used in this Act and in the Renewable Energy (Electricity) Act 2000 has the same meaning in this Act as it has in that Act.","sortOrder":2},{"sectionNumber":"4","sectionType":"section","heading":"Act to bind Crown","content":"#### 4 Act to bind Crown\n\n This Act binds the Crown in right of each of the States, of the Australian Capital Territory and of the Northern Territory. However, it does not bind the Crown in right of the Commonwealth.","sortOrder":3},{"sectionNumber":"5","sectionType":"section","heading":"Imposition","content":"#### 5 Imposition\n\n The small‑scale technology shortfall charge that is payable under the Renewable Energy (Electricity) Act 2000 is imposed by this section.","sortOrder":4},{"sectionNumber":"6","sectionType":"section","heading":"Rate of charge","content":"#### 6 Rate of charge\n\n The rate of charge is $65 per MWh.","sortOrder":5},{"sectionNumber":"7","sectionType":"section","heading":"Act does not impose a tax on property of a State","content":"#### 7 Act does not impose a tax on property of a State\n\n (1) This Act does not impose a tax on property of any kind belonging to a State.\n (2) In this section:\n\n> property of any kind belonging to a State has the same meaning as in section 114 of the Constitution.","sortOrder":6}],"analysis":{"summary":{"complexity_score":3,"scope_assessment":{"changed":false,"description":"The Act is narrow and focused entirely on its stated purpose: imposing and setting the rate of the small-scale technology shortfall charge. It does not appear to have expanded beyond its original intent. The operative provisions are minimal and precise — three substantive sections covering imposition, rate, and constitutional limitation."},"complexity_factors":["Relies heavily on definitions and obligations set out in a separate Act (Renewable Energy (Electricity) Act 2000), meaning the full picture requires reading multiple pieces of legislation","Constitutional dimension: the exclusion of Commonwealth Crown and protection of State property references section 114 of the Constitution, requiring constitutional literacy to fully understand","Staged commencement provisions tied to another Act's schedule add a layer of cross-referencing","Operates within a broader market mechanism (STC trading scheme) that requires background knowledge to properly contextualise"],"plain_english_summary":"## What This Law Does\n\nThis Act imposes a **financial penalty charge** on electricity retailers (like your power company) who fail to meet their obligations under Australia's small-scale renewable energy scheme.\n\n## How the Scheme Works\n\nUnder Australia's renewable energy laws, electricity retailers are required to purchase a certain number of **Small-scale Technology Certificates (STCs)** — these are credits generated by households and small businesses that install things like:\n- Rooftop solar panels\n- Solar water heaters\n- Small wind turbines\n- Heat pumps\n\nIf a retailer doesn't buy enough of these certificates, they owe a **shortfall charge** (essentially a penalty tax) to the government.\n\n## The Charge Rate\n\nThis Act sets that penalty at **$65 per megawatt-hour (MWh)** of the shortfall. This is deliberately set high enough to make it cheaper for retailers to just buy the certificates than pay the penalty — which is the point. It pushes retailers to support the small-scale renewables market.\n\n## Who Does This Affect?\n\n- **Electricity retailers** bear the direct legal obligation and cost\n- **Households and small businesses** with solar or other small renewable systems benefit indirectly, because retailers are incentivised to purchase the STCs those systems generate (supporting the rebate/payment system)\n- **State governments** are bound by this law, but the Commonwealth itself is not\n- **State-owned property** cannot be taxed under this Act (a constitutional requirement)\n\n## Why It Matters\n\nThis charge is the enforcement backbone of the small-scale renewable energy scheme. Without it, retailers could simply ignore their obligations. The $65/MWh penalty rate creates a **price ceiling** for STCs — the market price of certificates won't rise above this level because retailers would just pay the penalty instead."},"flash_summary":{"complexity_score":2,"scope_assessment":{"changed":false,"description":"Based on the text of this Act alone, its scope is narrowly to impose the small‑scale technology shortfall charge and to fix its dollar rate at $65/MWh (sections 5–6), to adopt definitions from the Renewable Energy (Electricity) Act 2000 (section 3), and to state commencement and Crown‑binding rules (sections 2, 4 and 7). The Act does not expand or alter rules about liability, measurement, collection or penalties within its own text; those operational matters remain within the scope of the Renewable Energy (Electricity) Act 2000 as referenced (section 3 and section 5)."},"complexity_factors":["Heavy cross‑reference to the Renewable Energy (Electricity) Act 2000 for definitions, liability and collection (section 3 and section 5).","A single fixed numeric rate set in the text ($65/MWh) reduces calculation complexity but creates a non‑index linked monetary obligation (section 6).","Commencement timing depends on another amending Act (commencement table and section 2), requiring coordination between instruments.","Constitutional carve‑outs and Crown‑binding distinctions (section 4 and section 7) require attention when applying the charge to government entities.","The Act is short and mechanically simple; operational complexity is outsourced to the referenced Act rather than contained here."],"plain_english_summary":"What this law does, mechanically\n\n- This Act creates and fixes a specific charge called the \"small‑scale technology shortfall charge.\" It does that by saying the charge that is payable under the Renewable Energy (Electricity) Act 2000 is imposed by this Act (section 5) and by setting a single numerical rate for that charge: $65 per megawatt‑hour (MWh) (section 6).\n\nHow it links to other laws and who decides liability\n\n- This Act does not itself define who must pay or how the charge is collected. It explicitly adopts terms used in the Renewable Energy (Electricity) Act 2000 (section 3) and states that the charge payable under that Act is imposed by this Act (section 5). That means the detailed rules about who is liable, how shortfalls are measured, collection procedures and penalties remain matters for the Renewable Energy (Electricity) Act 2000 and its instruments; this Act supplies the legal authority to impose the charge and the dollar amount.\n\nWho pays and who bears the cost (as framed by the text)\n\n- The Act makes a $65/MWh liability attach to whatever persons or entities are required to pay the small‑scale technology shortfall charge under the Renewable Energy (Electricity) Act 2000 (sections 3 and 5). The Act itself does not list liable parties; the identity of payers is determined by the referenced Act.\n\nTiming and commencement\n\n- Sections 1 and 2 (short title and commencement machinery) took effect on the day the Act received Royal Assent (28 June 2010). Sections 3–7 (which include the imposition and rate) commenced on 1 January 2011, at the same time as Part 1 of Schedule 1 to the Renewable Energy (Electricity) Amendment Act 2010 (section 2 and the commencement table).\n\nCrown and constitutional limits\n\n- The Act binds the Crown in right of each State and the two self‑governing Territories (Australian Capital Territory and Northern Territory) but does not bind the Crown in right of the Commonwealth (section 4).\n- The Act also states it does not impose a tax on property belonging to a State, using the same meaning as section 114 of the Constitution (section 7).\n\nPractical implications, incentives and costs (source‑grounded)\n\n- Direct, quantified compliance cost: the Act creates a fixed per‑MWh charge of $65 (section 6). That is the explicit monetary cost that attaches to the liability defined under the Renewable Energy (Electricity) Act 2000 (section 5).\n- Allocation of burden and administrative mechanics are not set out here: because the Act delegates definitions and liability rules to the Renewable Energy (Electricity) Act 2000 (section 3), the economic incidence (who ultimately pays) and collection methods depend on how that other Act allocates obligations and enforcement powers.\n- Implementation dependency and risk: enforcement, measurement of the shortfall, and the identity of liable parties are governed by the other Act and by any instruments made under it. This Act therefore depends on external rules for operational detail (section 3 and section 5).\n\nTrade‑offs and compliance burden (source‑grounded)\n\n- The law produces a transparent, fixed unit charge ($65/MWh) (section 6). That reduces uncertainty about the per‑unit dollar value of the shortfall charge but places any administrative and compliance burden on the persons identified as liable under the Renewable Energy (Electricity) Act 2000 (sections 3 and 5).\n- Because the Act binds State and Territory Crowns but not the Commonwealth (section 4) and disclaims imposing a tax on State property (section 7), there are constitutional and intergovernmental limits on whom the charge can be applied to directly.\n\nNet description\n\n- In short: this short Act (sections 3–7) authorises and fixes the dollar amount of a small‑scale technology shortfall charge referenced to the Renewable Energy (Electricity) Act 2000 ($65 per MWh), sets commencement dates (section 2 and the table), binds State and Territory Crowns but not the Commonwealth (section 4), and states it does not impose a tax on State property (section 7). Liability details, collection and enforcement are left to the Renewable Energy (Electricity) Act 2000 (section 3 and section 5)."},"kimi_summary":{"content_quality":"ok","complexity_score":2,"scope_assessment":{"changed":false,"description":"This legislation maintains its original narrow purpose as a 'companion charge' Act. It was always intended to be a short, technical statute that imposes a specific charge rate and nothing more, leaving all substantive rules (who pays, when, how to calculate shortfalls) to the primary Renewable Energy (Electricity) Act 2000. The scope has not expanded beyond this original intent."},"complexity_factors":["Extremely short — only 7 operative sections","No defined terms section of its own; imports all definitions by reference to the Renewable Energy (Electricity) Act 2000 via a single cross-reference in section 3","Single, flat rate with no calculations or conditions ($65/MWh in section 6)","Minimal conditional logic — only constitutional safeguard in section 7","No exceptions, exemptions, or administrative procedures contained within this Act"],"plain_english_summary":"This law creates a financial penalty called the 'small-scale technology shortfall charge' for electricity retailers who fail to buy enough renewable energy certificates from small-scale systems like rooftop solar panels.\n\n**What it does:**\n- **Sets a penalty price** of $65 per megawatt-hour (MWh) for electricity companies that don't meet their legal obligations to support small-scale renewable energy\n- **Works with another law** — the Renewable Energy (Electricity) Act 2000 — which requires electricity retailers to surrender a certain number of certificates each year proving they've supported renewable energy generation\n- **Acts as a safety net** to ensure retailers either buy the required certificates or pay this charge instead\n\n**Who it affects:**\n- **Electricity retailers** (the companies that sell you power) — they must either buy small-scale technology certificates (STCs) from solar panel owners or pay this charge\n- **State governments** — the law binds them too, meaning government-owned electricity companies must comply\n\n**Why it matters:**\nThis charge ensures the small-scale renewable energy scheme actually works. Without it, retailers might ignore their obligations to support rooftop solar. The $65/MWh rate is set high enough to make buying certificates more attractive than paying the penalty, keeping money flowing to households and businesses that install solar panels.\n\n**Key technical note:** The law carefully avoids constitutional problems by explicitly stating it doesn't tax State property (referencing section 114 of the Constitution, which prevents the Commonwealth from taxing States)."},"issue_detection":{"absurdities":[{"type":"self_contradicting","section":"4","severity":"medium","reasoning":"A Commonwealth Act imposes a financial charge on liable entities including State Crowns, but expressly exempts the Commonwealth Crown. This is constitutionally orthodox (s.114 concerns States taxing Commonwealth property, not vice versa), but the asymmetry creates a logical oddity: the Commonwealth, as the architect of the renewable energy scheme and a potential electricity purchaser, bears no liability under the charge it imposes on others. While this reflects standard drafting practice for Commonwealth charges, it produces the absurd result that the Commonwealth government can be a wholesale electricity buyer completely insulated from a charge designed to incentivise renewable energy compliance across all market participants.","confidence":0.55,"description":"The Act binds the Crown in right of States and Territories but explicitly does not bind the Crown in right of the Commonwealth, yet the charge is imposed under a Commonwealth Act and administered by a Commonwealth regulator (the Clean Energy Regulator). The entity responsible for enforcement is the one entity exempt from the charge."},{"type":"impossible_compliance","section":"6","severity":"medium","reasoning":"Fixing a specific dollar figure in primary legislation rather than in regulations or by ministerial determination creates an inflexibility that undermines the charge's purpose as a dynamic market signal. If the spot price or certificate price for small-scale technology certificates moves significantly, the $65 fixed rate may become either punitive or inadequate as a compliance incentive, yet correcting it requires full Parliamentary process. This is particularly problematic for a market-linked instrument. The Act provides no mechanism for indexation or review, making long-term calibration structurally impossible without legislative amendment.","confidence":0.72,"description":"The rate of charge is fixed at $65 per MWh in primary legislation, meaning any adjustment to reflect market conditions, inflation, or policy recalibration requires an Act of Parliament rather than delegated legislation or regulatory determination."},{"type":"other","section":"3","severity":"low","reasoning":"A wholesale definitional incorporation by reference without a saving provision means this Act's operative scope is entirely contingent on another Act's current state. While common in drafting practice, it creates a logical vulnerability: Parliament could amend the parent Act's definitions in ways that unintentionally alter the scope of liability under this charge Act, without any express consideration of that effect. The charge Act itself gives no guidance on what expressions it uses, making its standalone comprehensibility nil.","confidence":0.5,"description":"Section 3 incorporates definitions entirely by reference to the Renewable Energy (Electricity) Act 2000, meaning this Act contains no operative definitions of its own. If the parent Act is amended, repealed, or its definitions altered, the meaning of terms in this Act changes automatically and potentially retroactively without any amendment to this Act."},{"type":"self_contradicting","section":"7","severity":"medium","reasoning":"Section 4 expressly binds State Crowns to the charge obligation. Section 7(1) then carves out any imposition of tax on State property (tracking s.114 of the Constitution). The coexistence of these provisions creates an internal incoherence: either the charge applies to State Crown entities (s.4) or it does not to the extent it touches State property (s.7). In practice, a State Crown entity that is a liable entity under the parent Act and holds relevant property could argue that s.7 exempts it from the charge notwithstanding s.4. The Act provides no mechanism to resolve this tension, leaving it to courts to determine which provision prevails and in what circumstances.","confidence":0.68,"description":"Section 7(1) declares the Act does not impose a tax on property of a State, while section 4 declares the Act binds the Crown in right of each State. These two provisions operate in direct tension: the Act purports to bind State Crowns to pay a charge while simultaneously disclaiming that it imposes a tax on State property."}],"contradictions":[{"severity":"high","section_a":"4","section_b":"7","confidence":0.75,"description":"Section 4 binds the Crown in right of each State to this Act's obligations, but section 7(1) provides the Act does not impose a tax on property of any kind belonging to a State. These provisions directly contradict each other in their application to State Crown entities that are liable under the charge."},{"severity":"low","section_a":"5","section_b":"3","confidence":0.42,"description":"Section 5 imposes the charge as it is 'payable under the Renewable Energy (Electricity) Act 2000', but section 3 imports all definitions from that Act by reference without specifying which expressions are actually used in this Act. If 'small-scale technology shortfall charge' is defined or redefined in the parent Act in a way inconsistent with the imposition mechanism in section 5, the two Acts may impose different or incompatible obligations."}]}},"importantCases":[],"_links":{"self":"/api/acts/renewable-energy-electricity-small-scale-technology-shortfall-charge-act-2010","history":"/api/acts/renewable-energy-electricity-small-scale-technology-shortfall-charge-act-2010/history","analysis":"/api/acts/renewable-energy-electricity-small-scale-technology-shortfall-charge-act-2010/analysis","conflicts":"/api/acts/renewable-energy-electricity-small-scale-technology-shortfall-charge-act-2010/conflicts","importantCases":"/api/acts/renewable-energy-electricity-small-scale-technology-shortfall-charge-act-2010/important-cases","documents":"/api/acts/renewable-energy-electricity-small-scale-technology-shortfall-charge-act-2010/documents"}}