Infringement notices
If an regulated entity’s final emissions value (FEV) is:
- Zero or less, they are compliant and will not receive a penalty.
- Above zero they are not compliant with the NVES, so are liable for financial penalty.
These entities will receive an infringement notice and will have 28 days to pay. The first FEVs (for the 2025 performance period) will be issued from February 2028.
For clarity
The final date for an entity to extinguish units against their IEV for the 2025 performance period is 31 December 2027.
The 2025 FEV will be issued in February 2028.
If an entity's interim emissions value (IEV) in a performance period is above zero, they can earn or trade units in future performance periods. When they receive the units, they can then extinguish them. This will help them to balance their IEV and reduce their penalty amount when their FEV is issued.
If their FEV is still above zero the entity will receive an infringement notice. The penalty amount in the notice is equal to their FEV multiplied by $50 AUD.
If penalties remain unpaid after the due date, legal action may follow.
Entities have the following options for responding to an infringement notice:
- Pay the penalty by the due date, as specified in the infringement notice.
- Ask the NVES Regulator for more time to pay the penalty.
- Apply to the NVES Regulator to withdraw the infringement notice.
Example
After deciding not to purchase and use NVES units to balance their IEV to zero (for the 2025 performance period) Crimson Motors receives an FEV of 2,000 in February 2028. The penalty amount payable in the infringement notice will be $100,000 (AUD). This is calculated by multiplying the FEV (2,000) by $50 (AUD).
If Crimson Motors chooses not to pay their penalty, we may initiate civil proceedings in a relevant court. The maximum penalty amount the regulator could seek is the entity’s FEV multiplied by $100 (AUD).
This is a fictional scenario and is not based on any real regulated entity.
