Subsequent consultation on the gas levy

Summary

MBIE data indicates that not all the gas that should be subject to the levy is having levy paid on it. This may be because there are some practical issues for levy payers in accurately applying the requirements of the legislation due to information barriers. There may also be some ambiguity about who the legislation makes liable to pay the levy in some complex supply chain situations. This consultation seeks your feedback on these issues and on several options for shifting the point in the supply chain where liability sits to mitigate the issues.

The current purpose of the gas levy is for safety, monitoring and information activities undertaken by WorkSafe and MBIE. However, the Energy Innovation (Electric Vehicle and Other Matters) Amendment Bill, currently before the Commerce Committee, will expand the purpose of the levy so that the Energy Efficiency and Conservation Authority can recover a portion of its funding from the gas levy.

The proposed expansion of the levy under the Bill will exacerbate a situation where a smaller base of firms bear the cost of the levy than the apparent intent of the Act. However, the Bill also offers an immediate vehicle to make any legislative changes to address the identified issues. Therefore, short targeted consultation is being undertaken on where in the supply chain liability for this levy should sit.