On Friday (5th May), the government released its final Amendment Rules to implement reforms to the Safeguard Mechanism. The Amendment Rules set out the technical detail of the Safeguard Mechnism reforms and how the provisions will be implemented, including baseline setting arrangements, declining baselines over time, flexible compliance options, and treatment of trade-exposed baseline adjusted (TEBA) facilities.
In this update, we provide a summary of the key provisions and updates from previous policy iterations announced in late March, including the confirmation of special assistance and cost impact metrics for manufacturing (TEBA), final changes to rules for new gas fields, confirmation of the 2026-27 review, and the impact and implications of new amendments on market outcomes.
