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Tuesday, 13 September 2011
Page: 9864

Mr COMBET (Charlton—Minister for Climate Change and Energy Efficiency) (13:15): I move:

That this bill be now read a second time.

This bill is part of a package implementing the carbon pricing mechanism and related reforms.

The Ozone Protection and Synthetic Greenhouse Gas (Import Levy) Act 1995 (the 'import levy act'), together with the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989, provide the framework to apply levies to the import of ozone-depleting substances and synthetic greenhouse gases.

This bill provides that imports of Kyoto protocol synthetic greenhouse gases, namely hydrofluorocarbons, perfluorocarbons and sulfur hexafluoride, both as bulk gases or as a gas present in equipment, will be subject to the carbon charge by way of the existing levy structure. The carbon charge will be calculated based on the carbon dioxide equivalence of the gas, multiplied by the applicable charge. The carbon price will be in addition to the existing levy imposed by the import levy act.

This bill also enables the minister to determine that a licensee is exempt from paying either the total levy or the carbon price component of the levy where the minister is satisfied that the circumstances prescribed in the import levy act, or the circumstances prescribed in regulations made for the import levy act, have been met. These circumstances include, for example, where the gas is imported for use in medical equipment or if it is impracticable to impose the levy. I commend the bill to the House.

Debate adjourned.