National Greenhouse and Energy Reporting (Safeguard Mechanism) Rule 2015
36Assessed cost impact
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36 Assessed cost impact
Facilities that are not manufacturing facilities (1) If a facility is not a manufacturing facility in a financial year, the assessed cost impact for the facility for the financial year is the number worked out using the following formula: Start formula start fraction P subscript SM times PE over RF end fraction end formula where:
PSM is the number of dollars in the Safeguard Mechanism default prescribed unit price for the first adjusted financial year for the facility.
PE is the number equal to the difference between:
(a) the amount of covered emissions of greenhouse gases (in t CO2‑e) from the operation of the facility during the first adjusted financial year for the facility; and
(b) the hypothetical baseline of the facility for the first adjusted financial year for the facility.
RF is the number of dollars in the revenue of the facility in the first adjusted financial year for the facility.
(2) For the purposes of calculating the revenue of the facility in the first adjusted financial year for the facility, any funding provided to the facility for that financial year under the Powering the Regions Fund must be excluded from that revenue. (3) However, if the number of dollars in the revenue of the facility in the first adjusted financial year for the facility is less than or equal to zero, the assessed cost impact for the facility for the financial year is the significant cost impact threshold for the facility. Manufacturing facilities (4) If a facility is a manufacturing facility in a financial year, the assessed cost impact for the facility for the financial year is the number worked out using the following formula: Start formula start fraction P subscript SM times PE over EBIT end fraction end formula where:
PSM is the number of dollars in the Safeguard Mechanism default prescribed unit price for the first adjusted financial year for the facility.
PE is the number equal to the difference between:
(a) the amount of covered emissions of greenhouse gases (in t CO2‑e) from the operation of the facility during the first adjusted financial year for the facility; and
(b) the hypothetical baseline of the facility for the first adjusted financial year for the facility.
EBIT is the number of dollars that is equal to the earnings before interest and tax of the facility in the first adjusted financial year for the facility.