Clean energy measure - income tax and GST implications

Introduction

The following information is about the income tax and goods and services tax (GST) implications of the clean energy measures.

The carbon pricing mechanism (CPM) started on 1 July 2012 as part of the government's plan to tackle climate change and secure a clean energy future. Under the CPM, liable entities must acquire and surrender eligible emissions units for their covered emissions to avoid paying a unit shortfall charge.

The CPM will operate at a fixed price for the first three years, transitioning to a flexible price under an emissions trading scheme from 1 July 2015.