Earlier this year on 17 July 2007, the Federal Government announced the introduction of the Australian Emissions Trading System which may impact as many as 900 large emitters as well as upstream fuel suppliers. While the goal is for trading to commence in 2011, detailed design elements are to be completed next year with a view for enabling legislation to be passed in 2009. On 15 August this year the first steps were taken with the introduction of the National Greenhouse and Energy Reporting Bill. Currently, the government is undertaking consultation on early abatement activities with decisions on early action and consultation taxation treatment of permits to occur in the first half of next year. Now is the time for industry and the profession to be engaging with the government. This paper covers:
- the Australian Emissions Trading System: where are we now?
- flow-on tax consequences on such issues as permit issuance, trading, abatement activities and incentives
- next steps.