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On this page:
- Penalties and late emissions returns
- Penalties and inaccurate emissions returns
- Culpability and when a fine applies
- How we calculate fines for late emissions returns
- How we calculate fines for incorrect emissions returns
- Penalties accrued before 1 January 2021
Penalties and late emissions returns
Submit your emissions return on time when one is due. If it is on time and accurate, you will avoid a fine.
If you are late in filing your emissions return, we will tell you. We will give you a further 20 working days to submit it. If you submit your return within this time, no penalty will apply if it is correct.
If you don't meet the extended deadline, you may be fined. The size of the fine depends on what happened and the reasons for the late return. We explain more about penalties and how they are calculated later on this web page.
If the emissions return was late but reports no emissions or removals (zero change in units over time), no penalty will apply.
More about emissions returns and when and how to file them
Note, this does not apply to provisional emissions returns, as these are voluntary.
Find out more about provisional emissions returns
Penalties and inaccurate emissions returns
Make sure your emissions return is accurate when you submit it. If it is accurate (and sent to us on time, for emissions returns that you must submit) you will avoid being fined.
If we find errors in any emissions return, we will let you know if we are going to correct it. While the return is being reviewed, any other pending deadlines may be paused:
- deadlines for units owing from the return
- deadlines for any outstanding penalties.
If we correct the return, we will assess if a fine applies.
The size of the fine depends on what happened and the reasons for the late return. We explain more about this later on this web page.
If the correct emissions return reports no emissions or removals (zero change in units over time), you won't receive a fine. No penalty will apply.
Culpability and when a fine applies
We make decisions about fines for late or inaccurate emissions returns. When we do this, we take your circumstances into account. This includes finding out what happened and the reasons for the late return or error. We will contact you to ask about this.
Understanding your circumstances will help us decide whether you took 'reasonable care' when submitting your return. 'Reasonable care' means what a reasonable person in the same circumstances would have done.
If we find that you have not taken reasonable care, you will usually be fined.
We will then determine your 'culpability'. Culpability means how your actions contributed to what happened and the reasons for the lateness or error.
To work out your level of culpability, we use a sliding scale. This scale ranges from 'did not take reasonable care' to 'carelessness' to 'knowingly failed'. Our assessment of your level of culpability will affect the size of the fine.
Let us know if you:
- realise you have missed a deadline, or
- find you made a mistake after you submit your emissions return.
If you tell us about this voluntarily, we will take this into account.
How we calculate fines for late emissions returns
If we find that a fine applies for failing to submit a mandatory emissions return after the extended deadline, it is calculated based on:
- the number of units involved
- our assessment on why it was filed late (level of culpability)
- the current carbon price
- whether you told us voluntarily.
If you received units from the return, the fine is capped at $1,000.
If the emissions return reports no emissions or removals (zero change in units over time), you won't be fined.
How we calculate fines for errors in emissions returns
If we find that a fine applies for errors in an emissions return, we base this calculation on:
- the size of the error
- our assessment of the reasons behind this error (level of culpability)
- the current carbon price
- whether you told us about the error voluntarily.
If the error means you received too few units or paid too many units, the fine is capped at $1,000.
If the correct return reports no emissions or removals (zero change in units over time), you won't be fined.
Penalties accrued before 1 January 2021
The way fines are calculated changed on 1 January 2021. Fines for something that happened before 2021 will be calculated using the previous method.
Related information
Penalties for not following ETS rules
Fines for clear-felling or deforesting permanent forestry in the ETS
Infringement offences in the ETS
Education and compliance strategy for forestry in the Emissions Trading Scheme (ETS) [PDF, 4 MB]
