Future Made in Australia (Guarantee of Origin Charges) Regulations 2025

The Regulations rely on definitions established by the Act, which they do not reproduce. Only two terms are defined in section 4: “Act” means the Future Made in Australia (Guarantee of Origin Charges) Act 2024. All other key concepts - production profile, delivery profile, consumption profile, accredited power station, electricity generation system other than an accredited power station, energy storage system, aggregated system, registered profile, and registered renewable electricity facility - are defined in the Act or in the underlying Guarantee of Origin legislative framework. A production profile is a record of the production of a good to which a guarantee of origin certificate can be attached, typically hydrogen or renewable electricity. A delivery profile tracks the transfer of that good to a buyer. A consumption profile records when the good is consumed. Each profile can be registered with the Clean Energy Regulator under the scheme. An accredited power station is a facility that generates electricity and meets accreditation requirements. An electricity generation system other than an accredited power station is likely a smaller or non‑accredited generator, such as a rooftop solar array that participates in the scheme. An energy storage system is a battery or pumped hydro facility that stores renewable electricity. An aggregated system is a group of small generators or storage units treated as a single facility for registration purposes. The Regulations do not distinguish between these facility types for charging purposes: all four are charged nil. The concept of “registered profile” is crucial because the charge applies only if a profile is registered on 1 July or becomes registered during the financial year. The pro‑rata formula, common to all three profile types, uses “period remaining in the financial year” - the number of days from registration to 30 June - divided by 365 (or 366 in a leap year? The formula says “number of days in the financial year” but does not specify whether it is 365 or actual days; presumably the actual number of days in that financial year). Rounding is to the nearest cent, with 0.5 cents rounded up. The concepts create a flat‑fee structure: a single annual charge, not scaled by production volume, number of certificates, or market value. This means the marginal cost per unit of output declines as output increases, which favours large operators.

The primary persons affected are entities that register a production, delivery, or consumption profile under the Guarantee of Origin scheme. These are likely to be producers of hydrogen or hydrogen‑based fuels, renewable electricity generators that opt into the scheme, industrial users that consume such energy and want certified origin, and traders or intermediaries that handle delivery. The Regulations impose a $8,166 annual charge on each such profile. A business that registers multiple profiles - for example, one production profile and one delivery profile - will face two charges, totalling $16,332 per year. An entity that registers all three profile types will pay $24,498 per year. The instrument also affects operators of renewable electricity facilities, but only nominally: the prescribed charge is nil. This means a power station, energy storage system, or aggregated system incurs no charge under these Regulations for its facility registration. However, that does not mean the facility operator is unaffected; they may still register a production profile for the electricity they generate, and that profile will trigger the $8,166 charge. Small participants are disproportionately affected. A small hydrogen producer with a single production profile pays the same $8,166 as a large industrial plant. The charge is not indexed to the Consumer Price Index or any measure of administrative cost, so its real burden may rise or fall over time. Government agencies, such as the Clean Energy Regulator, are affected as administrators of the charge, but the Regulations do not prescribe administrative or enforcement mechanisms. Consumers of certified products may indirectly bear the cost if producers pass on the charge in prices. The instrument does not exempt any category of registrant - for example, small business, not‑for‑profit, or research entities - from the $8,166 charge. It applies uniformly to all profiles. The effective date of 3 November 2025 means that for the 2025‑26 financial year (which ends 30 June 2026), the full annual charge applies to profiles registered on or before that date? Actually, the Regulations commence on 3 November 2025. For the 2025‑26 financial year, if a profile was registered before commencement, the charge would still apply because the Regulations apply to financial years ending on or after 30 June 2026. The pro‑rata formula would apply from the commencement date, not from the actual registration date if registration predates the Regulations. This creates ambiguity: the formula refers to “the day in the financial year that the production profile becomes a registered profile”. If registration occurred before the Regulations commenced, that day is before the charge existed. The Act would need to clarify whether the charge is imposed only from commencement.

The Regulations themselves impose only one duty: to pay the prescribed charge. The Act (not the Regulations) sets out the obligation to pay charge, the due date, and the consequences of non‑payment. Section 5(1) of the Regulations states that the prescribed amount of charge on a production profile is $8,166 (or pro‑rata). This is a quantification of the charge, not the imposition of liability. The duty to pay arises under the Act, sections 9 to 15 of which presumably create the charge and delegate the amount. The Regulations do not specify who is liable - the registered holder of the profile, or the operator of the facility. That must be found in the Act. Similarly, the Regulations do not set due dates, late payment penalties, refunds, or objections. They do not provide a right to dispute a charge calculation. The rounding rule (s 5(3), 6(3), 7(3), and similar) is a mechanical direction but could be relevant if a dispute arises over a few cents. The pro‑rata formula gives a right to a reduced charge if registration occurs after 1 July. This is a benefit: late registrants pay less for the remaining part of the year, rather than the full $8,166. However, the formula is the same for all profile types. The nil charge for facilities means facility operators have no duty to pay under these Regulations for that registration, but they still must comply with the Act’s requirements for facility accreditation. The Regulations do not create any new rights, such as the right to a certificate or to access the scheme. Those rights arise under the primary Guarantee of Origin legislation. The Regulations are purely a subordinate instrument that quantifies a financial obligation. As such, they impose a compliance burden: registrants must calculate the charge correctly, ensure payment on time, and keep records. For a profile registered on 1 July, the calculation is trivial. For a mid‑year registration, the divisor “number of days in the financial year” may vary. A 365‑day year yields a daily rate of $22.37; a leap year would yield $22.28. The Regulations do not specify how to determine number of days - presumably the actual number of days in that particular financial year. This is a minor ambiguity. The rounding rule applies to the final amount, not intermediate steps.

This instrument does not prescribe any penalties. The enforcement framework is left to the Act, which likely creates civil or criminal penalties for failing to pay charge, for late payment, or for providing false information in connection with the charge. The Act may also include provisions for recovery of unpaid charge as a debt due to the Commonwealth, interest, and administrative penalties. Because the Regulations merely set the amount, they do not directly affect the penalty quantum. However, non‑compliance with the duty to pay the prescribed amount could trigger those Act‑based penalties. The Clean Energy Regulator is likely the enforcement body. The nil charge for facilities might reduce enforcement risk for those entities, but they still must comply with registration and accreditation requirements. The Regulations’ precision in rounding and pro‑rata calculation could be used defensively: a registrant who pays the exact amount calculated under the formula is fully compliant. Conversely, a person who overpays has no right to a refund under these Regulations - they would need to rely on the Act. The instrument does not provide for remission, waiver, or variation of the charge. It is inflexible: the same $8,166 applies regardless of hardship, error, or special circumstances. The absence of a penalty provision in the Regulations does not mean there are no penalties; rather, the penalty regime is in the Act, which the user’s source did not include. This deep dive cannot speculate on the Act’s penalty provisions. The only enforcement‑adjacent detail in the Regulations is the rounding rule: it mandates rounding to the nearest cent with 0.5 cents up. That reduces minor disputes over fractional cents but does not affect substantive compliance.

The Regulations are made under the Future Made in Australia (Guarantee of Origin Charges) Act 2024, which itself is part of the broader Future Made in Australia legislative package. That package includes the Future Made in Australia Act 2024, the Future Made in Australia (Guarantee of Origin) Act 2024, and related amendment acts. The Guarantee of Origin scheme is administered alongside the Renewable Energy Target, the Safeguard Mechanism, and the National Greenhouse and Energy Reporting scheme. The charges prescribed in these Regulations fund the operation of the GO scheme, but the instrument does not create a direct interaction with those other laws. The charge may be a deductible expense for income tax purposes, but the Regulations do not state that. The nil charge for facilities means that an operator of a power station who registers both a facility and a production profile will pay only for the profile, not the facility. That might simplify compliance for facility operators but could also create perverse incentives: if the facility registration has no charge, operators might register facilities unnecessarily, potentially increasing administrative burden for the Regulator. The Regulations do not interact with state or territory laws, as the GO scheme is a Commonwealth regime. However, state energy regulators may use GO certificates for compliance with state renewable energy schemes, and the charge could be a cost that is passed through in electricity or hydrogen offtake agreements. The instrument’s commencement is tied to the Act’s commencement (3 November 2025). If the Act is amended, the Regulations may need updating to remain consistent. The Act may also contain a provision for indexation of charges, but if so, it has not been triggered in these Regulations - the $8,166 is a static figure. The Regulations do not incorporate any other legislative instruments by reference, other than the Act itself. They are a self-contained charging instrument but rely heavily on the Act for definitions and enforcement.

As at the date of this instrument (16 October 2025, registered), there is no amendment history. The Regulations are in their original form. They have not been repealed, replaced, or varied. The commencement table indicates they take effect on the later of the day after registration and immediately after the Act commences. The Act commenced on 3 November 2025, so the Regulations effectively commence on that date. Any future amendment would need to be made by further regulations under the Act. The instrument does not provide for any transitional arrangements or grandfathering. The $8,166 figure is unlikely to remain static indefinitely; inflation and administrative cost changes may prompt amendment. The formula for facilities, while mathematically producing nil, is retained - that is an odd drafting choice that may be simplified in future amendments. The rounding rule is consistent across all sections and likely will remain unchanged. The instrument is a single‑page regulatory instrument - only Part 2 contains operative provisions. There is no schedule or annexure. The definition section is minimal (only one definition). This suggests the Regulations were drafted quickly or with the expectation that the Act provides all necessary definitions. The lack of amendment history as at the date of this deep dive is noted; practitioners should monitor the Federal Register of Legislation for future changes.

The Regulations are too new (commenced November 2025) to have any recorded litigation. The instrument itself is a prescription of amounts; it is unlikely to be directly challenged unless a registrant argues that the charge is invalid because it exceeds a statutory cap or is procedurally improper. The Act may contain a limit on the amount of charge that can be prescribed, but the source text does not reveal that. Any challenge would likely focus on the Act’s validity under the Commonwealth’s taxation power or on the head of power for the Guarantee of Origin scheme. The Regulations do not impose a tax in the strict sense if they are a fee for service; the characterisation could be litigated. However, no cases exist to date. The rounding rule (0.5 cents upward) has been standard in Australian regulations and is unlikely to be contested. The pro‑rata formula has only been used in similar contexts (e.g., annual licence fees) and has been upheld. Because the facility charge is nil, a registrant might challenge the inclusion of a formula that yields zero as unnecessary or as implying an intention to charge in the future. That is speculative. For now, there is no litigation history for this instrument.

Several traps await the unwary. First, the $8,166 charge applies per profile, not per entity. A business that registers multiple profiles may face a cumulative charge that is not obvious from a quick reading: if you register a production profile and a delivery profile, you pay $16,332; add a consumption profile and it is $24,498. Small operators may not anticipate this. Second, the nil charge for facilities seems like a free pass, but the facility must still be a “registered renewable electricity facility” under the Act. The Regulations do not waive accreditation requirements; they only set the charge at zero. If the Act imposes a separate fee for accreditation, that fee is unaffected. Third, the pro‑rata formula for profiles uses “number of days in the financial year”. It does not say whether this is 365 or 366. In a leap year, the daily fraction is slightly smaller, reducing the charge by a few dollars. A registrant who calculates using 365 in a leap year will overpay slightly; the formula compels the actual number of days. The rounding rule cuts both ways: 0.5 cents rounds up, which could be contested if the Act does not authorise rounding. Fourth, the commencement date 3 November 2025 is not 1 July. For the 2025‑26 financial year, any profile registered before 3 November 2025 will become a registered profile before the charge existed. The formula begins from “the day in the financial year that the production profile becomes a registered profile”. If that day is before 3 November, does the charge apply from that day or from commencement? The Regulations do not address this. Arguably, the charge only applies for the period after commencement, but the formula does not provide for a separate start date. A registrant who registered on 1 July 2025 might argue no charge is payable for the pre‑commencement period, resulting in a lower pro‑rata amount. The instrument is silent, creating uncertainty. Fifth, the instrument does not index the $8,166. Over time, inflation erodes the real value, but that also means the government may need to amend the regulations frequently. For now, it is fixed. Sixth, do not assume the nil charge for facilities means no cost. The Act may impose a separate administration fee not covered by these Regulations. Seventh, rounding is required: subsection (3) says “must be rounded to the nearest cent (rounding 0.5 cents upwards)”. A careless calculation that does not round properly may lead to a shortfall or overpayment. Eighth, the Regulations do not specify to whom the charge is payable, where, or by what method - those are in the Act. Relying solely on these Regulations for compliance is insufficient. Ninth, persons who register multiple profiles at different times will need to calculate separate pro‑rata amounts for each. Tenth, the instrument is made under the Act but does not cross‑reference the Act’s provisions on due dates, so a registrant must read both instruments together.

Compliance with these Regulations is straightforward but requires integration with the Act. Step one: determine whether you have a registrable production, delivery, or consumption profile under the Guarantee of Origin scheme. If yes, identify the date the profile becomes a registered profile. Step two: if that date is 1 July of the financial year, the charge is $8,166. If it is later, calculate the pro‑rata amount using the formula: (Period remaining in the financial year / Number of days in the financial year) × $8,166. Period remaining is the number of days from the registration date to 30 June inclusive. Use the actual number of days in the financial year (365 or 366). Step three: round the result to the nearest cent, with 0.5 cents rounded up. Step four: pay the calculated amount by the due date specified in the Act (likely 30 days after invoicing or by a set date). Step five: keep records of the calculation, including the registration date and the number of days used. Step six: for facilities (accredited power station, other generation, energy storage, aggregated system), the charge is nil. No payment is required under these Regulations, but ensure the facility is a registered renewable electricity facility under the Act. Step seven: if you have multiple profiles, repeat steps two to four for each. Step eight: monitor for amendments. The $8,166 may change, or the nil charge for facilities may be replaced with a positive amount. The Clean Energy Regulator’s guidance should be consulted. Step nine: if you register a profile after 1 July, be aware that the pro‑rata calculation reduces the charge; do not pay the full $8,166. Step ten: if you believe an error has been made, refer to the Act for objection or refund provisions, as these Regulations do not provide a review mechanism. The rounding rule must be applied precisely: do not round intermediate steps, only the final amount. Use exact arithmetic. For example, if registration occurs on 1 January 2026 (182 days remaining in a 365‑day year), the charge is (182/365) × $8,166 = $4,070.68 (rounded). Any deviation may lead to underpayment. For leap years, adjust accordingly. The key is to read these Regulations alongside the Act; they are not a standalone code.