Pay into the fund to offset development
IMPORTANT UPDATE: The transitional price cap has expired in accordance with Rule 5. All BCF Charge Quotes and price estimates will now be provided with the uncapped credit price. BCT Charge Quotes that were previously issued with a capped price have now expired – please contact the BCF Payments mailbox. Quotes that identified an expiry date in three years remain valid.
Transitional Cap for Biodiversity Conservation Fund payments expired 16 October 2023
Transitional Cap for Biodiversity Conservation Fund payments expires 16 October 2023
The Biodiversity Offsets Payment Calculator (BOPC) Order 2022 included Transitional price cap rules to enable a staged introduction of the BCF Charge System in a way to minimise significant market shocks. The transitional price cap rules for the calculation of Charges for the Biodiversity Conservation Fund (BCF) Charge System within the BOPC Order expired at midnight on 16 October 2023.
Under the Biodiversity Conservation Act 2016, development proponents may choose to pay into the Biodiversity Conservation Fund as an alternative to retiring biodiversity credits.
Under the BCF Charge System you are required to obtain a Charge Quote from the BCT prior to making a payment into the fund. When issuing a Charge Quote, the BCT will also provide a payment application form which you can submit to make a final payment.
Charge Quotes are valid for up to three years. Indexation will be charged for each month between when the Charge Quote is issued and when the payment is made. Charge Quotes apply to specific development proposals and are not transferable.
The time to prepare a Charge Quote will vary depending on the number of credits submitted with the application. Charge Quotes for small obligations (less than 50 credits and/or less than four ecosystem credit types) will be issued in under 10 working days. Charge Quotes for large obligations (50 or more credits or four or more ecosystem credit types) will be issued in under 30 working days. Very large obligations may have a longer timeframe negotiated – the BCT will contact you if this is the case.
You may seek a Charge Quote once an application that requires the retirement of credits has been submitted to a consent authority. You will need to supply evidence that the project has been submitted. You may only pay into the fund once a consent authority has issued conditions of consent that specify the number and type of credits to be retired.
There is no obligation for you to demonstrate that you have tried to find your own offsets before paying into the fund. That is, paying into the fund is available as an option as soon as a development has been approved and a legal requirement to retire credits exists.
All correspondence relating to Charge Quotes and Payments should be made to the BCT BCF Quotes and Payments Mailbox - [email protected]
Receiving a Charge Quote to make a payment into the Biodiversity Conservation Fund
The process for obtaining a Charge Quote to make a payment into the Biodiversity Conservation Fund is as follows:
- Applicant submits a completed Charge Quote Application form to obtain a Charge Quote Statement.
- BCT will review the application and provide a Quote Number (3-5 business days). This will identify if additional documentation is required to prepare a Charge Quote, and the timeframes to prepare the Charge Quote Statement.
- The BCT will provide a Charge Quote Statement and Payment Application form that identifies the Credit Price and the Monthly Indexation that will apply for the credits in the application.
- This form will identify any additional documentation required to make a payment to the fund in the future.
Charge Quote Application form
A Charge Quote Application Form must be submitted before a Charge Quote can be issued. This form must be accompanied by all required supporting documentation to be considered complete (see page 1 of the form for detailed requirements), including:
- submitted development application or approved development consent conditions (or relevant approvals) – the latter will be required to make a payment;
- credit report (like for like) or similar; and
- if applicable, a statement of reasonable equivalence of biodiversity credits, or evidence that an application for a statement has been submitted to the Department of Planning and Environment (see below).
Payment Application form
To make a payment to the fund, it will be necessary to provide the following documentation:
- approved development consent conditions (or relevant approvals) if not submitted with the Charge Quote Application;
- a GIS shapefile of the development impact boundary; and
- if applicable, Commonwealth conditions of approval if the payment is also meeting an Environmental Protection and Biodiversity Conservation Act 1999 controlled action (see Page 2 of the Charge Quote Application)
If the above information has already been submitted with the Charge Quote Application, then this does not need to be re-submitted when making a payment into the fund.
Paying into the Biodiversity Conservation Fund
The process for paying into the Biodiversity Conservation Fund is as follows:
- Applicant submits a completed Charge Quote Statement and Payment Application form identifying the credits for which payment is to be made.
- BCT will review the application and confirm the final charge to be paid including indexation (3-5 business days). The BCT may request additional documentation required to process the application if not provided.
- BCT will advise in writing whether the application has been approved and will provide payment details if it has (payment term is twenty eight calendar days).
- Applicant submits Recipient Created Tax Invoice or request BCT issue an invoice (3-5 business days).
- Applicant makes the payment into the Biodiversity Conservation Fund.
- BCT will confirm receipt of payment and issue a certificate under section 6.33 of the Biodiversity Conservation Act 2016 (3-5 business days).
You can use the certificate issued by the BCT to prove to the consent authority (e.g. local Council) that the relevant consent condition has been met.
If a development proponent holds an offset obligation that was calculated using the BioBanking Assessment Methodology (BBAM) or Framework for Biodiversity Assessment (FBA), they will need to seek a ‘statement of reasonable equivalence of biodiversity credits’ from the Department of Planning and Environment (DPE) before obtaining a Charge Quote to make a payment into the Biodiversity Conservation Fund. For further information about equivalence statements, please visit the DPE website, call 1800 931 717 or email: [email protected]
If a Charge Quote Application is submitted before the statement of reasonable equivalence of biodiversity credits has been obtained, the BCT will hold the application until the statement is provided. This is because the BCT requires the final Offset Trading Group to be identified to allow preparation of the Charge Quote Statement.