Carbon tax - meet imminent deadlines or risk $1.7m penalty

The Coalition recently affirmed its plan to end the carbon tax and enact its Direct Action Plan on climate change and carbon emissions if it wins the federal election in September this year.

At this stage, it is not entirely clear how greenhouse gas emissions will be regulated if the carbon tax is abolished after the election. There is also some uncertainty as to how entities that are now in the process of acquiring and surrendering emissions units will be treated under a new carbon tax system.

Despite this uncertainty surrounding the future of the carbon tax, liable entities should remain vigilant because a failure to comply with current reporting or surrender obligations may result in significant penalties.