The SAIT Environmental Tax Technical Work Group submission provides detailed commentary on the 2025 Draft Taxation Laws Amendment Bill, focusing on proposed changes to the Carbon Tax Act and related legislation. The submission supports several initiatives, including the extension of electricity price neutrality, the energy efficiency tax incentive, and increased carbon offset allowances. It also welcomes the inclusion of third-party timber in sequestration deductions and updates to emission factors. However, the group raises significant concerns about the proposed higher carbon tax rate for emissions exceeding carbon budgets, citing risks of double taxation, administrative complexity, and unfair penalisation. Recommendations include deferring implementation, clarifying formulas, and aligning tax assessments with actual emissions over a five-year commitment period. Additional feedback is provided on diesel refund relief, fugitive emissions calculations, and the need for legislative clarity and fairness.
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