{"id":"C2014A00085","name":"True-up Shortfall Levy (Excise) (Carbon Tax Repeal) Act 2014","slug":"true-up-shortfall-levy-excise-carbon-tax-repeal-act-2014","collection":"act","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":"85 of 2014","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":8511,"registerId":"commonwealth-C2014A00085-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 True‑up Shortfall Levy (Excise) (Carbon Tax Repeal) Act 2014.","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.

17 July 2014

2. Sections 3 to 9

At the same time as Part 4 of Schedule 1 to the Clean Energy Legislation (Carbon Tax Repeal) Act 2014 commences.

18 July 2014

\n```\n\n> Note: This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.\n\n (2) Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.","sortOrder":1},{"sectionNumber":"3","sectionType":"section","heading":"Definitions","content":"#### 3 Definitions\n\n In this Act:\n\n> Joint Petroleum Development Area has the same meaning as in the Petroleum (Timor Sea Treaty) Act 2003.\n\n> person has the same meaning as in the Clean Energy Act 2011.\n\n> true‑up shortfall has the same meaning as in Part 4 of Schedule 1 to the Clean Energy Legislation (Carbon Tax Repeal) Act 2014.","sortOrder":2},{"sectionNumber":"4","sectionType":"section","heading":"Crown to be bound","content":"#### 4 Crown to be bound\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":"Extension to external Territories","content":"#### 5 Extension to external Territories\n\n This Act extends to every external Territory.","sortOrder":4},{"sectionNumber":"6","sectionType":"section","heading":"Extension to exclusive economic zone and continental shelf","content":"#### 6 Extension to exclusive economic zone and continental shelf\n\n This Act extends to Australia’s exclusive economic zone and continental shelf.","sortOrder":5},{"sectionNumber":"7","sectionType":"section","heading":"Extension to Joint Petroleum Development Area","content":"#### 7 Extension to Joint Petroleum Development Area\n\n This Act extends to the Joint Petroleum Development Area.","sortOrder":6},{"sectionNumber":"8","sectionType":"section","heading":"Imposition of levy","content":"#### 8 Imposition of levy\n\n (1) If a person has a true‑up shortfall, levy is imposed on the true‑up shortfall.\n (2) Levy imposed by subsection (1) is payable by the person.\n Amount of levy\n (3) The amount of levy imposed by subsection (1) on a true‑up shortfall is the amount worked out using the formula:\n ![](image.002.png)\n General\n (4) This section imposes levy only so far as that levy is a duty of excise within the meaning of section 55 of the Constitution.","sortOrder":7},{"sectionNumber":"9","sectionType":"section","heading":"Act does not impose a tax on property of a State","content":"#### 9 Act does not impose a tax on property of a State\n\n (1) This Act has no effect to the extent (if any) to which it imposes a tax on property of any kind belonging to a State.\n (2) In this section, property of any kind belonging to a State has the same meaning as in section 114 of the Constitution.","sortOrder":8}],"analysis":{"kimi_summary":{"content_quality":"ok","complexity_score":3,"scope_assessment":{"changed":false,"description":"The legislation remains tightly focused on its original purpose: imposing a levy on true-up shortfalls during the carbon tax repeal transition. It has not expanded beyond this specific transitional tax measure."},"complexity_factors":["Very short statute (only 9 sections)","Minimal defined terms (only 3 definitions, all referencing other Acts)","Single substantive operative provision (section 8) with straightforward conditional logic","No nested exceptions or complex cross-referencing beyond commencement table","Constitutional safeguards (sections 4, 8(4), 9) are standard boilerplate for federal tax legislation","Formula-based calculation in section 8(3) introduces slight complexity but is presented as a simple mathematical operation"],"plain_english_summary":"This law creates a one-off financial penalty called a 'true-up shortfall levy' that applies when someone fails to surrender enough carbon credits to cover their emissions during the final period of Australia's carbon pricing scheme.\n\n**What it does:**\n- **Imposes a levy (tax)** on anyone who has a 'true-up shortfall' — meaning they didn't hand in enough carbon permits to cover their pollution for the final year of the carbon tax system.\n- **Calculates the cost** using a formula that multiplies the shortfall amount by a price factor (likely the final carbon price or a penalty rate).\n- **Ensures constitutional validity** by carefully framing this as an excise duty (a type of federal tax) and explicitly excluding state government property from being taxed.\n\n**Who it affects:**\n- Large businesses and industrial facilities that were covered by the carbon pricing mechanism and failed to meet their final obligations before the scheme was abolished.\n\n**Why it matters:**\n- This was part of the 'carbon tax repeal' package in 2014. It served as a **final cleanup mechanism** — ensuring that even as the carbon price was being scrapped, any businesses that had underpaid or under-complied during the last compliance period still faced financial consequences. It prevented companies from gaming the system by simply waiting out the repeal.\n\n**Geographic scope:**\n- Applies across Australia, including external territories, offshore areas (exclusive economic zone and continental shelf), and the Joint Petroleum Development Area in the Timor Sea."},"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"},"summary":{"complexity_score":6,"scope_assessment":{"changed":false,"description":"The Act appears to operate precisely within its intended narrow scope — imposing an excise levy on true-up shortfalls arising from the carbon tax repeal. Its structure is deliberately limited by constitutional requirements (section 55), and there is no indication the scope expanded beyond its original purpose as a technical companion to the carbon tax repeal legislation."},"complexity_factors":["Constitutional layering: the Act's structure is driven by section 55 of the Constitution (requirement for separate excise Acts), which is not explained within the Act itself","Heavy cross-referencing: key definitions like 'true-up shortfall' and 'person' are defined entirely by reference to other Acts (Clean Energy Act 2011 and Clean Energy Legislation (Carbon Tax Repeal) Act 2014), making this Act incomprehensible in isolation","The levy calculation formula is not reproduced in the text (referenced as an image), obscuring a critical operative provision","Constitutional exemptions: section 114 of the Constitution protection for State property adds a layer of constitutional law","Jurisdictional complexity: extension to external territories, EEZ, continental shelf, and the Joint Petroleum Development Area (an international treaty zone) adds geographic and legal complexity","Dual commencement dates tied to another Act's schedule create timing dependencies","The underlying concept of a 'true-up shortfall' requires understanding the entire carbon tax repeal framework to properly interpret"],"plain_english_summary":"This short Act requires businesses and other entities that received excess carbon-tax-related payments when Australia repealed the carbon tax to repay the difference as an excise-style levy. It’s designed as a standalone excise for constitutional reasons, applies across Australia’s states, territories and offshore zones, but does not apply to State-owned property and does not bind the Commonwealth."},"flash_summary":{"complexity_score":4,"scope_assessment":{"changed":false,"description":"The text contains no indication the Act's scope was altered after enactment. Its original scope is set by its commencement rules (s2) and by cross‑references: it imposes an excise levy on 'true‑up shortfalls' as defined in the repealing Clean Energy legislation (s3, s8), subject to constitutional limits (s8(4), s9), and extends geographically and to States/Territories as specified (ss4–7)."},"complexity_factors":["Short, narrowly focused scheme but relies on cross-reference to the Clean Energy Legislation (Carbon Tax Repeal) Act 2014 for the key term 'true‑up shortfall' (s3).","Calculating the levy requires applying a statutory formula contained in the Act (s8(3))—the image/formula must be interpreted precisely when implemented.","Constitutional containment: levy operates only insofar as it is an excise under section 55 of the Constitution (s8(4)); interaction with s114-style limits on taxation of State property (s9).","Different Crown treatment: binds State and Territory Crowns but not the Commonwealth (s4), affecting compliance and recoverability against government entities.","Geographical reach spans external Territories, the EEZ, continental shelf and the Joint Petroleum Development Area, creating multi-jurisdictional application (ss5–7).","Commencement mechanics tie operative provisions to commencement of Part 4 of Schedule 1 to the Clean Energy Legislation (Carbon Tax Repeal) Act 2014, so timing depends on another instrument (s2)."],"plain_english_summary":"This Act imposes an excise-style levy on any person who has a “true‑up shortfall” (a term defined in the Clean Energy Legislation (Carbon Tax Repeal) Act 2014). The person with the shortfall must pay the levy, which is calculated by a statutory formula (s8(1)–(3)); the levy only applies to the extent it qualifies as an excise under the Constitution (s8(4)). The Act binds State and Territory Crowns (not the Commonwealth) and extends to external Territories, Australia’s EEZ, continental shelf and the JPDA (ss4–7)."}},"importantCases":[],"_links":{"self":"/api/acts/true-up-shortfall-levy-excise-carbon-tax-repeal-act-2014","history":"/api/acts/true-up-shortfall-levy-excise-carbon-tax-repeal-act-2014/history","analysis":"/api/acts/true-up-shortfall-levy-excise-carbon-tax-repeal-act-2014/analysis","conflicts":"/api/acts/true-up-shortfall-levy-excise-carbon-tax-repeal-act-2014/conflicts","importantCases":"/api/acts/true-up-shortfall-levy-excise-carbon-tax-repeal-act-2014/important-cases","documents":"/api/acts/true-up-shortfall-levy-excise-carbon-tax-repeal-act-2014/documents"}}