The Australian Accounting Standards Board (AASB) has released an updated version of a staff paper on accounting for Australia’s carbon pricing mechanism, specifically how to account for the ‘fixed price’ phase which is often referred to as a ‘carbon tax’. The latest update of the paper discusses the implications of the release of AASB Interpretation 21 ‘Levies’ (equivalent to IFRIC 21), and notes a number of interpretative issues surrounding the identification of the obligating event for the carbon tax.