ASIC Australian Securities and Investments Commission ACCC Australian Competition and Consumer Commission ATO Australian Taxation Office AUSTRAC Australian Transaction Reports and Analysis Centre DSEWPaC Department of Sustainability, Environment, Water, Population and Communities Regulates emissions units as financial products under the Corporations Act 2001 and Australian Securities and Investments Commission Act 2001 Addresses misrepresentations about the impact of carbon price on the price of goods and services Applies equivalent carbon price to specific fuels under the Fuel Tax legislation and, utilising risk management strategies, ensures the appropriate income tax and GST treatment arising from carbon price emissions liabilities Regulates the trading of emissions units in the secondary market as a ‘designated service’ under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 Applies equivalent carbon price to synthetic greenhouse gases under the Ozone Protection and Synthetic Greenhouse Gas Management legislation 4. Policy Implementation Engagement and education The Regulator recognises that engagement, education and support, in the first instance, assist participants to meet obligations and avoid inadvertent non-compliance. The Regulator releases information in the form of guidelines, factsheets, booklets, brochures, newsletters and calculators. Additionally, the Regulator ensures that participants have the opportunity to raise issues of concern and participate in workshops and discussion forums. Where possible, the Regulator will seek opportunities to engage with participants during the development of its systems through user-centred design processes. Responsibility for complying with relevant requirements legislation administered by the Regulator, including ensuring the accuracy of all information provided to the Regulator, rests with the individual person or organisation affected by the legislation. Monitoring compliance The Regulator monitors compliance with the climate change laws to: determine levels of compliance and identify trends in behaviour detect possible contraventions identify whether, and what type of, education and/or enforcement action may be required, and assess the effectiveness of its operations and programs, and identify opportunities for improvement. Compliance monitoring may occur through: checking of information provided in applications under the various legislative schemes and to the registries
Criteria for determining appropriate responses In determining appropriate responses to non-compliance, the Regulator will use a risk-based approach that takes into account participants’ behaviours and motivations. The continuum at Figure 1 (below) shows these behaviours and motivations, with the Regulator’s potential response according to the level of risk these behaviours pose. Behaviours and motivation Voluntary Compliance Accidental Opportunistic Intentional Informed self assessment Management is compliance-oriented Not yet compliant Attempting compliance (eg developing internal control systems to ensure compliance) Resistance to compliance Lack of indication of intention to comply (eg no indication of systems in place to ensure compliance) Deliberate Criminal intent or fraud Other illegal activity Clean Energy Regulator’s response Help and Support Educate and Provide Feedback Correct Behaviour Enforce the Law The Regulator will release information and guidelines to assist understanding of participants’ obligations The Regulator will provide opportunities for complying participants to ask questions, discuss issues of concerns and participate in educational and discussion forums The Regulator will use proactive audits to develop a better understanding of capabilities to comply The Regulator will provide additional guidance to targeted participants an apparent non-compliance is identified, the Regulator will provide relevant parties with an opportunity to respond The Regulator will provide feedback on adequacy of systems and arrangements to ensure compliance The Regulator will respond to detected non-compliance according to the severity (eg accepting enforceable undertakings, giving infringement notices, revocation and suspension) Contraventions that have a serious impact will be with accordingly Publication of information about breaches and enforcement activities Where appropriate, the Regulator will initiate investigations, pursue civil action or refer any relevant cases for criminal prosecution