Hefty fines for failing to report SF6 synthetic greenhouse gas imports
What you need to know
- In December 2025, the Federal Court imposed a significant fine on an Australian energy company for failing to report imports of electrical switchgear equipment containing synthetic greenhouse gas SF6, in breach of the Ozone Protection and Greenhouse Gas Management Act 1989 (Cth).
- This follows a record fine issued in June 2024 against a company for importing electrical switchgear equipment without a licence under the same Act.
- These enforcement decisions are a stark reminder to businesses of the importance of knowing their compliance obligations under the ozone protection and GHG management legislation in Australia and that failing to comply may lead to costly enforcement action.
What you need to do
- We expect the Department will continue to prioritise monitoring and enforcing compliance with Australia's national environmental laws including the Ozone Act.
- Businesses involved in the manufacture, import, export, use and/or disposal of products that contain or potentially contain scheduled greenhouse gases must be aware of their compliance obligations or risk enforcement action.
DCCEEW is cracking down on compliance with national environmental laws
The Federal Court of Australia fined an Australian company $450,000 in December 2025 for failing to disclose imports containing greenhouse gas sulfur hexafluoride (SF6), in breach of the Ozone Protection and Greenhouse Gas Management Act 1989 (Cth) (Ozone Act).
This follows a record fine issued by the Commonwealth Department of Climate Change, Energy, the Environment and Water (DCCEEW) in June 2024 of $465,480 to a different company for importing SF6 containing electrical switchgear without a licence.
Both penalties were the result of investigations led by DCCEEW into the businesses' compliance with the Ozone Act. They are evidence of the Government's increased impetus on monitoring compliance with Australia's environmental laws.
These enforcement decisions are also a stark reminder to businesses of the importance of knowing their compliance responsibilities under the Ozone Act and related laws and that any business who disregards or fails to comply with their obligations is at risk of enforcement action.
In this article, we provide a refresher of the Ozone Act and consider in more detail the circumstances surrounding the 2025 enforcement decision.
Synthetic greenhouse gases are closely regulated in Australia
Synthetic greenhouse gases are artificial chemicals commonly used in refrigeration and air conditioning, fire extinguishing, foam production, medical aerosols and in the electricity supply industry. They are also a by-product of some chemical manufacturing and aluminum production.
Synthetic greenhouse gases were introduced as replacements for ozone depleting substances as they do not damage the ozone layer. However, synthetic greenhouse gases trap heat in the atmosphere when released. Because of their stability and long life they can remain in the atmosphere for a long time thereby contributing to climate change.
A synthetic greenhouse gas' global warming potential (GWP) represents how much heat a synthetic greenhouse gas traps in the atmosphere over a specific time period. It is measured relative to carbon dioxide. The higher the GWP, the more heat a gas traps. For example, DCCEEW has identified sulfur hexafluoride (SF6) as having a GWP of 22,800 meaning the release of one tonne of SF6 is equivalent to releasing 22,800 tonnes of carbon dioxide into the atmosphere.
For these reasons, the following synthetic greenhouse gases are closely regulated in Australia:
- Sulfur hexafluoride (SF6)
- Hydrofluorocarbons (HFCs)
- Perfluorocarbons (PFCs)
- Nitrogen trifluoride (NF3)
The Ozone Act controls synthetic greenhouse gases to reduce their impact
Given the harm that synthetic greenhouse gases can cause to the environment and, in particular, their impact on climate change, strict regulations have been developed to control and manage these substances in Australia. The Ozone Act and related Acts protect the environment by reducing emissions of ozone depleting substances and synthetic greenhouse gases.
Foremost, the Ozone Act does this by establishing a comprehensive licensing regime. Any person who manufactures, imports or exports a scheduled substance, or equipment that contains or uses a scheduled substance, must hold a licence (subject to certain limited exceptions).
There are five different types of licences depending on the nature of the activity and the substance and/or equipment in question. These include "controlled substances licences" which permit the manufacture, import or export of scheduled substances and "equipment licences" which permit the manufacture, import or export of equipment that contains or uses a scheduled substance.
Recordkeeping and reporting obligations are imposed under the Ozone Act. Any person who manufactures, imports or exports a scheduled substance, or manufactures, imports or exports equipment under an equipment licence, must report to the Minister about that activity on a quarterly basis.
Failure to hold the requisite licence(s) and/or comply with the reporting obligations is an offence under the Act and may attract criminal and/or civil penalties.
The Act also establishes a national phase-down of HFCs. Importers of bulk HFCs require quota entitlements for those bulk HFCs. The quotas are subject to annual caps and a declining trajectory.
Minister for the Environment and Water v GE Grid Australia
The Federal Court of Australia case of Minister for the Environment and Water v GE Grid Australia Pty Ltd [2025] FCA 1609 concerns a failure by GE Grid Australia to report to the Minister for the Environment and Water in relation to its importation of synthetic greenhouse gas equipment containing SF6.
GE Grid operates a business in Australia that includes the wholesale distribution of high-voltage electrical apparatus and equipment used in large scale energy and transmission infrastructure across Australia for Australia’s national power grid. Relevantly, the equipment includes electrical switchgear containing SF6.
GE Grid admitted, in its defence and in the statement of agreed facts filed during the proceedings, that it failed for eight consecutive reporting periods over four years, to comply with its reporting obligations under section 46 of the Ozone Act with respect to the importation of electrical switchgear containing SF6. This was despite the Department informing GE Grid of its reporting obligations when the equipment licence was first granted and subsequently renewed, and numerous reminders given to GE Grid's "nominated person".
GE Grid was quick to admit the contraventions and agreed to the Minister seeking declaratory relief. The parties agreed to a joint submission seeking agreed orders. The orders included a suggested quantum by way of pecuniary penalty of $400,000, being $50,000 per contravention.
On hearing the matter, the court accepted the statement of agreed facts and found GE Grid's conduct was "serious, systematic and of significant duration". Having considered the nature of the breaches and GE Grid's conduct, the court decided to grant the agreed orders. This included an order that GE Grid pay pecuniary penalties totalling $400,000, plus a further $50,000 for the Minister's costs.
Final thoughts
It is widely known that DCCEEW has struggled in the past with its capacity to investigate and respond to breaches of Australia's national environmental laws. These recent enforcement decisions following DCCEEW-led investigations under the Ozone Act suggest an uplift in that capacity and a desire by DCCEEW to take action against individuals and businesses who disregard national environmental laws.
Given the success of the December 2025 decision, we expect DCCEEW will continue to prioritise this workstream.
Businesses that engage in the manufacture, import, export, use and/or disposal of products that contain or potentially contain potent greenhouse gases such as SF6 must be aware of their compliance obligations or risk costly enforcement action.
