What it does
The Clean Energy Legislation (Carbon Tax Repeal) Act 2014 abolished the Australian Government's carbon pricing mechanism, commonly known as the "carbon tax", which had been in operation since 1 July 2012 under the Clean Energy Act 2011. The Act received Royal Assent on 17 July 2014, with the repeal taking effect from 1 July 2014.
The Act operates through five schedules:
- Schedule 1 repeals the Clean Energy Act 2011 and five associated charging Acts, and makes consequential amendments to dozens of Commonwealth Acts to remove references to carbon units, carbon charges, and related mechanisms.
- Schedule 2 inserts a new Part V into the Competition and Consumer Act 2010, imposing a "carbon tax price reduction obligation" on regulated businesses to pass on cost savings to consumers.
- Schedule 3 removes the income tax offset for conservation tillage that was linked to the carbon pricing framework.
- Schedule 4 repeals the Steel Transformation Plan Act 2011, which had provided industry assistance to steel manufacturers affected by carbon pricing.
- Schedule 5 adjusts the annual funding allocations for the Australian Renewable Energy Agency (ARENA) under the Australian Renewable Energy Agency Act 2011.
The Act is primarily of historical significance. Its operative work is complete: the carbon tax framework was repealed a decade ago. However, the price reduction obligation in Schedule 2, the ARENA funding adjustments in Schedule 5, and the transitional provisions in Schedule 1 may remain relevant for historical compliance analysis and ongoing regulatory interpretation.