Liable entities must surrender enough certificates to acquit their liability each year. If you surrender less than the required surrender amount, you’re in shortfall and charges may apply.
We publish details of all shortfall amounts on the certificate shortfall register.
Find out how and when to surrender certificates.
Large-scale generation shortfall
You must surrender large-scale generation certificates (LGC) in proportion to your relevant acquisitions.
You can carry forward an LGC shortfall if it’s less than 10% of the amount you need to surrender for the year. This adds it to your LGC liability for the next assessment year. You can carry forward shortfall over multiple years, as long as it stays under 10% of your certificate liability.
You don't need to pay a shortfall charge if you carry forward the shortfall.
Once your shortfall exceeds 10% you must pay the shortfall charge.
Small-scale technology shortfall
You must surrender small-scale technology certificates (STCs) every quarter.
You can’t carry forward an STC shortfall.
Shortfall charges
A charge of $65 applies per LGC or STC you haven’t surrendered.
Once we accept surrendered certificates, we’ll issue an invoice in the REC Registry. Payment terms are within 28 days (late fees may apply). This fee is not tax deductible.
The table shows when shortfall charges become payable for a range of scenarios.
Table: Certificate shortfall charge payment scenarios
| Scenario | When shortfall charges become payable |
| You lodge a renewable energy shortfall statement for the assessment year. | Either on:
|
| We make a default assessment of your shortfall for an assessment year. | On the day the shortfall charges for the original assessment became payable. |
| We amend your energy acquisition statement. | On the day the shortfall charges for the original assessment became payable. |
| We amend your notice of assessment. | Either on:
|
Default assessment of shortfall charges
We’ll assess if you have a shortfall if you fail to either:
- lodge an energy acquisition statement for the assessment year
- surrender more certificates after your energy acquisition statement is amended.
If we find you’re liable, you won’t be able to surrender LGCs or STCs to acquit your liability. You’ll also need to pay the shortfall charges. STC shortfall and interest charges are non-refundable.
Refunds for overpayment
You can get a refund for any shortfall charges you’ve already paid if you have less relevant acquisitions due to amendments to your energy acquisition statement (EAS).
We’ll either pay you the refund or use it to pay any outstanding fees that you owe. Refunds for overpayments include the shortfall charge as well as any related penalties or interest fees.
Refunds for shortfall charges
If you’ve paid an LGC shortfall charge, you may be eligible to get a refund. The admin fee is non-refundable.
We calculate the admin fee as set out in Part 6, regulation 28.5 of the Renewable Energy (Electricity) Regulations 2001.
We don’t refund STC shortfall charges.
Tax changes
From 1 January 2019, tax is no longer payable on refunds of LGC shortfall charges. These refunds are non-assessable non-exempt income. For more information visit the ATO website.
Am I eligible for a refund?
You’re eligible for a refund if you meet the following criteria.
This means for the year you were in shortfall you lodged your:
- energy acquisition statement
- large-scale generation shortfall statement.
The allowable refund period:
- begins when you lodge your large-scale generation shortfall statement
- ends 3 years after you paid the shortfall charge (the next business day if this falls on a weekend or public holiday).
You can only claim a refund if there is no shortfall in the year prior to when the certificates are surrendered for refund. This includes carried forward shortfall.
If you're eligible you can surrender certificates to acquit some or all your shortfall. Then you can request a refund of that shortfall amount. The admin fee is non-refundable.
You don’t have to claim a refund for the total shortfall amount. You can make a partial certificate surrender.
How to claim a shortfall refund
- Lodge your claim in the REC Registry
- Prepare a letter with the bank account details for your refund transfer on company letterhead and signed by the CFO or equivalent
- Send the letter via email to ret-liability@cer.gov.au
We usually process refund claims within 6 weeks. It may take longer for complex claims or if we need to request more information.
The following are example scenarios where a liable entity is eligible for a refund. For more specific advice contact us.
Examples
A liable entity must surrender LGCs for the 2023 assessment year. They:
- lodge their EAS and large-scale generation shortfall statement on 14 February 2024
- only surrender some LGCs so they pay the shortfall charge at the same time.
The liable entity must surrender LGCs for the 2024 assessment year. They:
- lodge their EAS for the 2024 assessment year on 1 February 2025
- surrender enough LGCs to acquit their total liability
- have no shortfall for the 2024 assessment year.
On 5 February 2025, they request to surrender LGCs to acquit their 2023 shortfall.
Is the liable entity eligible for a refund?
Yes. They’re eligible for a shortfall refund (minus the admin fees) for the 2023 assessment year. This is because they:
- lodged an EAS and large-scale generation shortfall statement on time
- claimed the refund within the allowed refund period
- had no large-scale generation shortfall charge in the year before the certificates were surrendered.
A liable entity must surrender LGCs for the 2022 assessment year. They:
- lodge their EAS and large-scale generation shortfall statement on 9 February 2023
- only surrender some LGCs so they pay the shortfall charge at the same time.
The liable entity must surrender LGCs for the 2023 assessment year. They:
- lodge their EAS for the 2023 assessment year on 14 February 2024
- surrender enough LGCs to acquit their total liability
- have no shortfall for the 2023 assessment year.
We amend the liable entity’s 2023 EAS. They:
- choose not to surrender more LGCs to acquit their increase in liability
- pay the shortfall charge on 30 June 2024.
The liable entity must surrender LGCs for the 2024 assessment year. They:
- lodge their EAS and surrender the total amount of LGCs on 14 February 2025
- have no shortfall for the 2024 assessment year.
On 20 February 2025, they request to surrender LGCs to acquit their 2022 and 2023 shortfall.
Is the liable entity eligible for a refund?
Yes. They’re eligible for a shortfall refund (minus the admin fees) for the 2022 and 2023 assessment years. This is because they:
- lodged an EAS and large-scale generation shortfall statement each year on time
- claimed the refund within the allowed refund period
- had no large-scale generation shortfall charge in the year before the certificates were surrendered.