Overview
To minimise the risk of carbon leakage, the Safeguard Mechanism reforms introduced the trade-exposed baseline-adjusted (TEBA) framework. The framework provides a reduced decline rate for a three-year period for facilities with a scheme cost impact above a specified threshold. We are seeking feedback on two different technical aspects which feed into the TEBA calculations.
The Earnings Before Interest and Tax (EBIT) Guidelines will provide direction on how manufacturing facilities covered by the Safeguard Mechanism calculate EBIT for the purpose of applying for a TEBA determination. We are seeking feedback on whether the draft EBIT Guidelines provide the direction required to calculate EBIT at a facility level and whether the guidelines sufficiently cover all facilities regardless of corporate or operating structure.
Feedback is also sought on the proposed approach for calculating the Default Prescribed Unit Price. This is a value calculated and published by the Department of Climate Change, Energy, the Environment and Water before 30 June each financial year and is required to calculate a Safeguard facility’s scheme cost, for the purposes of its TEBA application.
Your feedback will assist us to develop a final set of EBIT Guidelines and to develop the process for calculating the Default Prescribed Unit Price.
To have your say:
read the draft EBIT Guidelines and the Default Prescribed Unit Price Consultation Paper
provide feedback by lodging a document as your submission
The consultation period has closed.
