Repealing the Carbon Tax
The Australian Government will abolish the carbon tax from 1 July 2014. This will lower costs for Australian businesses and ease cost of living pressures for households.
Carbon tax repeal bills
The Government has introduced the carbon tax repeal bills as the first item of legislative business for the 44th Parliament. The bills and their accompanying Explanatory Memorandums are now available to view on the Parliament of Australia website:
- Clean Energy Legislation (Carbon Tax Repeal) Bill 2013
- Clean Energy (Income Tax Rates and Other Amendments) Bill 2013
- Clean Energy Finance Corporation (Abolition) Bill 2013
- Climate Change Authority (Abolition) Bill 2013
- Customs Tariff Amendment (Carbon Tax Repeal) Bill 2013
- Excise Tariff Amendment (Carbon Tax Repeal) Bill 2013
- Ozone Protection and Synthetic Greenhouse Gas (Import Levy) (Transitional Provisions) Bill 2013
- Ozone Protection and Synthetic Greenhouse Gas (Import Levy) Amendment (Carbon Tax Repeal) Bill 2013
- Ozone Protection and Synthetic Greenhouse Gas (Manufacture Levy) Amendment (Carbon Tax Repeal) Bill 2013
- True-up Shortfall Levy (Excise) (Carbon Tax Repeal) Bill 2013
- True-up Shortfall Levy (General) (Carbon Tax Repeal) Bill 2013
Environment and Communications Legislation Committee Inquiry - Clean Energy Legislation (Carbon Tax Repeal) Bill 2013 and related bills
On 14 November 2013, the Senate referred the Clean Energy Legislation (Carbon Tax Repeal) Bill 2013 and related bills to the Environment and Communications Legislation Committee for inquiry and report by 2 December 2013. Submissions closed on 22 November 2013.
Details on the inquiry can be found at: www.aph.gov.au/About_Parliament/Senate/Committees/New_Inquiries/Clean_Energy
Exposure drafts and public consultation
The Government released exposure drafts of legislation to repeal the carbon tax on 15 October 2013. Consultation closed on 4 November 2013. For more information on the closed consultation process, including a consultation paper on the exposure drafts of legislation, see Repealing the Carbon Tax – Public Comments.
Why are we removing the carbon tax
Repealing the carbon tax and the Clean Energy Package is designed to:
- Reduce the cost of living - modelling by the Australian Treasury suggests that removing the carbon tax in 2014-15 will leave average costs of living across all households around $550 lower than they would otherwise be in 2014-15.
- Lower retail electricity by around 9 per cent and retail gas prices by around 7 per cent than they would otherwise be in 2014-15 with a $25.40 carbon tax.
- Boost Australia’s economic growth, increase jobs and enhance Australia’s international competitiveness by removing an unnecessary tax, which hurts businesses and families.
- Reduce annual ongoing compliance costs for around 370 liable entities by almost $90 million per annum.
- Remove over 1,000 pages of primary and subordinate legislation.
Ensuring lower prices are passed through
The Australian Competition & Consumer Commission (ACCC) will have new powers to monitor prices and take action against businesses that attempt to exploit other businesses and consumers by charging unreasonably high prices or making false or misleading claims about the effect of the carbon tax repeal on prices.
This will ensure that consumers benefit from expected price reductions following the removal of the carbon tax. These new provisions will complement the existing provisions of the Australian Consumer Law that prohibit misleading and deceptive conduct and false or misleading representations.
Industry assistance provided under the Jobs & Competitiveness Program, the Energy Security Fund and the Steel Transformation Plan will continue in 2013-14 for the purpose of meeting carbon tax liabilities.
Climate Change Authority
The Climate Change Authority will be abolished. Many of the functions currently performed by the Authority will not be needed once the carbon tax is gone.
Role of the Clean Energy Regulator
The Clean Energy Regulator will ensure that carbon tax liabilities are met in full. Any enquiries regarding compliance and reporting arrangements for 2013-14 should continue to be directed to the Clean Energy Regulator
Direct Action Plan
The Government will consult separately on the design of the Emissions Reduction Fund and the Direct Action Plan.