2026-27 Safeguard Mechanism Review

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Overview

We are seeking your feedback on the Safeguard Mechanism policy settings to ensure they are appropriately calibrated and continue to deliver emissions reductions in line with Australia’s targets.

The scope for the review was determined during the 2023 reforms and in Australia’s Net Zero Plan published in 2025. It will consider a broad range of issues including:

the post-2030 decline rate for baselines
whether the scheme is appropriately incentivising onsite abatement
suitability of arrangements for trade exposed facilities
consideration of the final report from the Carbon Leakage Review.

We are seeking your views in response to this consultation paper. There will be a range of formal and informal opportunities to engage with the department during the consultation period.