The default baseline decline rate under the Safeguard Mechanism is 4.9% per annum from FY2023–24 through FY2029–30. These reductions apply uniformly across most covered facilities, regardless of production changes. From FY2030 onwards, new rates will be established every five years based on Australia’s emissions trajectory toward net zero by 2050.
This consistent, legislated decline incentivises continuous emissions reduction while giving facilities the forward visibility they need for capital planning, technology investment, and strategic abatement.
References & sources
Primary regulatory documents and authoritative references underpinning this answer.