133Unit shortfall

133 Unit shortfall

Scope (1) This section applies if: (a) a person is a liable entity for an eligible financial year (the relevant eligible financial year); and (b) the relevant eligible financial year is a flexible charge year. Unit shortfall (2) If the number worked out using the formula in subsection (5) exceeds zero: (a) the person has a unit shortfall under this section for the relevant eligible financial year; and (b) the number of units in that shortfall is equal to the number worked out using that formula.

Note: Unit shortfall charge is imposed by whichever of the following is applicable:

(a) Part 3 of the Clean Energy (Charges—Excise) Act 2011;
(b) Part 3 of the Clean Energy (Charges—Customs) Act 2011;
(c) the Clean Energy (Unit Shortfall Charge—General) Act 2011.

No unit shortfall (3) If the number worked out using the formula in subsection (5) is zero, the person does not have a unit shortfall under this section for the relevant eligible financial year. Surplus surrender number (4) If the number worked out using the formula in subsection (5) is less than zero: (a) the person has a surplus surrender number for the relevant eligible financial year; and (b) the surplus surrender number is equal to the number worked out using that formula (expressed as a positive). Formula (5) The formula is as follows: Image unavailable in extracted text where:

emissions number means the person’s emissions number for the relevant eligible financial year.

number of units surrendered before the end of 1 February means the number of eligible emissions units the person surrendered, in relation to the relevant eligible financial year, before the end of 1 February next following the relevant eligible financial year.

surplus surrender number means the surplus surrender number (if any) of the person for the previous eligible financial year, so long as the previous eligible financial year is a flexible charge year.

Borrowing limit (6) If: (a) before the end of 1 February next following the relevant eligible financial year, the person surrendered, in relation to the relevant eligible financial year, carbon units (the borrowed units) that have a vintage year that next follows the relevant eligible financial year; and (b) the number of borrowed units exceeds 5% of the person’s emissions number for the relevant eligible financial year; this section has effect as if: (c) the person had not, before the end of that 1 February, surrendered, in relation to the relevant eligible financial year, the number of borrowed units that equals the excess; and (d) the person had, before the end of 1 February next following the next eligible financial year, surrendered, in relation to the next eligible financial year, the number of borrowed units that equals the excess. Eligible international emissions units—surrender limits (7) If: (a) the relevant eligible financial year is: (i) the eligible financial year beginning on 1 July 2015; or (ii) a later eligible financial year; and (b) before the end of 1 February next following the relevant eligible financial year, the person surrendered, in relation to the relevant eligible financial year, eligible international emissions units; and (c) there is an unacceptable designated limit situation of the person for the relevant eligible financial year; this section has effect as if: (d) the person had not, before the end of 1 February next following the relevant eligible financial year, surrendered, in relation to the relevant eligible financial year, the eligible international emissions units covered by the unacceptable designated limit situation; and (e) the person had, before the end of 1 February next following the next eligible financial year, surrendered, in relation to the next eligible financial year, the eligible international emissions units covered by the unacceptable designated limit situation.