This is a question where the honest answer is a shape, not a yes or no, and you should not rely on a website for the final word. Here is the shape.
What an STC is in law
STCs are created under the Renewable Energy (Electricity) Act 2000 and are described there as personal property that can be transferred. They are tracked in the REC Registry by the Clean Energy Regulator (CER). The scheme treats them as an environmental certificate, not as a share, a fund interest or a loan.
Where ASIC can come in
ASIC regulates financial products and services under the Corporations Act. Buying and selling STCs in the spot market is generally treated as dealing in a commodity-like certificate. But the picture changes if a business:
- offers a derivative, such as a forward or option on STC prices;
- pools investor money into a fund or scheme that holds certificates;
- gives advice that a person should buy or hold certificates as an investment;
- offers credit secured on certificates or future claims.
Those arrangements may need an Australian financial services licence or an exemption. If you are looking at one, speak to a lawyer first. Searches for “STC ASIC” and “STC as a financial product ASIC” usually come from here.
What regulation does apply to normal trading
- The CER’s rules on the registry, registered persons and agents. See do you need a licence.
- Australian Consumer Law, which covers misleading claims about rates and speed.
- Tax law, including GST and recipient-created tax invoices; see RCTI, GST and ABN.
- Privacy law, since claims carry customer details.
What this means for installers
For ordinary installer work, selling the certificates from jobs you installed, this question rarely bites. Your risk is a counterparty that does not pay, not ASIC. Read how traders fund and earn, use the trader checklist and check the rate and process on pricing and the switch page. This is general information, not legal advice.