Climate change: new measures to CPRS
On Monday, 4 May 2009 the government announced that the Carbon Pollution Reduction Scheme (CPRS) start date will be delayed by one year to 1 July 2011. Additionally, the government has decided to introduce a fixed price for the first year of $10 per tonne, transitioning to market trading from the following year.
Emissions intensive trade exposed industries eligible for 60 per cent assistance will receive a 10 per cent buffer, while those eligible for 90 per cent assistance will receive a five per cent buffer. Eligible businesses will receive funding to undertake energy efficiency measures from 1 July, 2009. The government has also increased its target for emissions reductions to 25 per cent of 2000 levels should international agreement be reached. The minimum will remain five per cent if no international agreement is reached.
The delay has provided entities more time to gather the right information as there will be one more year under the National Greenhouse and Energy Reporting System (NGERS) before the scheme commences. It is also hoped that relevant accounting and assurance standards will also be released by the revised start date.
'The delay has meant that there is now more time for the underlying building blocks and related pieces to be put into place,' said Andrew Stringer, Head of Audit.
The Institute will keep members up-to-date with more developments on the scheme and urges government to continue its communication campaign and advise business on key developments in the next twelve months.
'The proposed CPRS will create a variety of income tax and GST outcomes that will impact the generation, trading and surrender of permits under the scheme. The Institute has been actively involved in providing its advice to government around how Australia’s tax laws should apply, and what amendments may be required to existing laws to appropriately deal with the transactions,' added Yasser El-Ansary, the Institute’s Tax Counsel.
Article last updated 19 February 2014