Greg Hunt (Flinders, Liberal Party, Minister for the Environment) Share this | Link to this | Hansard source

I present a supplementary explanatory memorandum to the Clean Energy Legislation (Carbon Tax Repeal) Bill 2014. I move government amendments (1) to (48) to the Clean Energy Legislation (Carbon Tax Repeal) Bill 2014 together:

(1) Schedule 2, heading, page 71 (lines 1 and 2), omit "Price exploitation in relation to the carbon tax repeal", substitute "Carbon tax price reduction obligation".

(2) Schedule 2, item 3, page 71 (lines 13 and 14), omit "Price exploitation in relation to the carbon tax repeal", substitute "Carbon tax price reduction obligation".

(3) Schedule 2, item 3, page 71 (line 17), omit "A corporation", substitute "An entity".

(4) Schedule 2, item 3, page 71 (line 21), omit "A corporation", substitute "An entity".

(5) Schedule 2, item 3, page 71 (after line 24), after the third dot-point in section 60, insert:

(6) Schedule 2, item 3, page 72 (line 1), after "for", insert "certain".

(7) Schedule 2, item 3, page 72 (after line 2), after section 60, insert:

60AA Objects etc.

(1) The main objects of this Part are:

  (a) to deter price exploitation in relation to the carbon tax repeal at each point in the supply chain for regulated goods; and

  (b) to ensure that all cost savings attributable to the carbon tax repeal are passed through the supply chain for regulated goods.

(2) The intention of the Parliament in enacting this Part is to ensure that all cost savings attributable to the carbon tax repeal are passed on to consumers of regulated goods through lower prices.

(8) Schedule 2, item 3, page 72 (before line 5), before the definition of carbon charge component in section 60A, insert:

  applicable compliance period, for a carbon tax removal substantiation notice, has the meaning given by subsection 60FC(2).

  bulk SGG importer means an entity that:

  (a) holds a controlled substances licence under the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 that allows the entity to import synthetic greenhouse gases; and

  (b) supplies synthetic greenhouse gas to SGG customers.

(9) Schedule 2, item 3, page 72 (after line 9), after the definition of carbon charge component in section 60A, insert:

  carbon tax removal substantiation notice has the meaning given by subsection 60FA(3).

(10) Schedule 2, item 3, page 72 (before line 10), before the definition of carbon tax repeal in section 60A, insert:

  carbon tax removal substantiation statement has the meaning given by subsection 60FD(3).

(11) Schedule 2, item 3, page 73 (after line 34), after the definition of carbon tax scheme in section 60A, insert:

  electricity customer means an entity that purchases electricity.

  electricity retailer means:

  (a) an entity who:

     (i) is a retailer within the meaning of the National Energy Retail Law as it applies in a State or a Territory; and

     (ii) sells electricity to electricitycustomers; or

  (b) an entity who is a retailer within the meaning of the Electricity Industry Act 2000 (Vic.); or

  (c) an entity who is a retail entity within the meaning of the Electricity Act 1994 (Qld); or

  (d) an entity who:

     (i) holds a retail licence within the meaning of the Electricity Industry Act 2004 (WA); or

     (ii) holds an integrated regional licence within the meaning of the Electricity Industry Act 2004 (WA) that authorises the entity to sell electricity; or

  (e) an entity who is an electricity entity within the meaning of the Electricity Reform Act (NT) and whose licence under that Act authorises the entity to sell electricity; or

  (f) any other entity who produces electricity in Australia.

(12) Schedule 2, item 3, page 73 (after line 36), after the definition of engages in price exploitation in relation to the carbon tax repeal in section 60A, insert:

  entity means any of the following:

  (a) a corporation (as defined by section 4);

  (b) an individual;

  (c) a body corporate;

  (d) a corporation sole;

  (e) a body politic;

  (f) a partnership;

  (g) any other unincorporated association or body of entities;

  (h) a trust;

  (i) any party or entity which can or does buy or sell electricity, natural gas or synthetic greenhouse gas.

(13) Schedule 2, item 3, page 74 (after line 6), after the definition of listed corporation in section 60A, insert:

  National Energy Retail Law means the National Energy Retail Law set out in the Schedule to the National Energy Retail Law (South Australia) Act2011 (SA).

(14) Schedule 2, item 3, page 74 (after line 9), after the definition of natural gas in section 60A, insert:

  natural gas customer means an entity that purchases natural gas.

  natural gas retailer means:

  (a) an entity who:

     (i) is a retailer within the meaning of the National Energy Retail Law as it applies in a State or a Territory; and

     (ii) sells natural gasto natural gas customers; or

  (b) an entity who is a gas retailer within the meaning of the Gas Industry Act 2001 (Vic.); or

  (c) an entity who is a retailer within the meaning of the Gas Supply Act 2003 (Qld); or

  (d) an entity who holds a trading licence under the Energy Coordination Act 1994 (WA); or

  (e) an entity who holds a licence under the Gas Act 2000 (Tas.) to sell gas by retail.

(15) Schedule 2, item 3, page 74 (after line 18), after the definition of regulated supply in section 60A, insert:

  regulated supply input costs of an entity means the entity's input costs in relation to the making by the entity of regulated supplies of electricity, natural gas or synthetic greenhouse gas.

  Royal Assent day means the day on which the Act that inserted this Part receives the Royal Assent.

  SGG customer means an entity that purchases synthetic greenhouse gas.

(16) Schedule 2, item 3, page 75 (lines 3 and 4), omit "Price exploitation in relation to the carbon tax repeal", substitute "Carbon tax price reduction obligation".

(17) Schedule 2, item 3, page 75 (line 6), omit "A corporation", substitute "An entity".

(18) Schedule 2, item 3, page 75 (line 8), omit "a corporation", substitute "an entity".

(19) Schedule 2, item 3, page 75 (lines 11 to 17), omit paragraphs 60C(2)(b) and (c), substitute:

(b) the price for the supply does not pass through all of the entity's cost savings relating to the supply that are directly or indirectly attributable to the carbon tax repeal.

(20) Schedule 2, item 3, page 75 (after line 17), at the end of section 60C, add:

(3) For the purposes of this Part, in determining whether the price for a supply made by an entity does not pass through all of the entity's cost savings relating to the supply that are directly or indirectly attributable to the carbon tax repeal, have regard to the following matters:

  (a) the entity's cost savings that are directly or indirectly attributable to the carbon tax repeal;

  (b) how the cost savings mentioned in paragraph (a) can reasonably be attributed to the different supplies that the entity makes;

  (c) the entity's costs;

  (d) any other relevant matter that may reasonably influence the price.

(21) Schedule 2, item 3, page 75 (before line 18), before section 60D, insert:

60CA Failure to pass on cost savings—250% penalty

(1) If:

  (a) either:

     (i) an entity contravenes subsection 60C(1) in relation to a particular supply of electricity or natural gas; or

     (ii) an entity that is a bulk SGG importer contravenes subsection 60C(1) in relation to a particular supply of synthetic greenhouse gas; and

(b) the contravention involved a failure to pass through all of the entity's cost savings relating to the supply that are directly or indirectly attributable to the carbon tax repeal;

there is payable by the entity to the Commonwealth, and the entity shall pay to the Commonwealth, by way of penalty, an amount equal to 250% of those cost savings that were not passed through.

When penalty becomes due and payable

(2) An amount payable by an entity under subsection (1) is due and payable on 1 July 2015.

Late payment penalty

(3) If an amount payable by an entity under subsection (1) remains unpaid after the time when it became due for payment, there is payable by the entity to the Commonwealth, and the entity shall pay to the Commonwealth, by way of penalty, an amount calculated at the rate of 6% per annum on the amount unpaid, computed from that time.

Recovery of penalties

(4) An amount payable by an entity under subsection (1) or (3):

  (a) is a debt due to the Commonwealth; and

  (b) shall be recovered by the Commission, on behalf of the Commonwealth, by action in a court of competent jurisdiction, unless the cost of doing so exceeds the amount.

Report to Parliament

(5) Within 13 months after the Royal Assent day, the Commission must report to Parliament in respect of penalties payable by entities.

(22) Schedule 2, item 3, page 75 (line 18), omit "corporation", substitute "entity".

(23) Schedule 2, item 3, page 75 (line 20), omit "a corporation", substitute "an entity".

(24) Schedule 2, item 3, page 75 (line 21), omit "corporation", substitute "entity".

(25) Schedule 2, item 3, page 75 (line 26), omit "corporation", substitute "entity".

(26) Schedule 2, item 3, page 75 (line 29) to page 76 (line 2), omit paragraph 60D(2)(c), substitute:

  (c) state that, in the Commission's opinion, the price for the supply did not pass through all of the entity's cost savings relating to the supply that were directly or indirectly attributable to the carbon tax repeal.

(27) Schedule 2, item 3, page 76 (before line 4), before paragraph 60D(3)(a), insert:

  (aa) under section 60CA; or

(28) Schedule 2, item 3, page 76 (lines 9 to 13), omit all the words from and including "the notice" to and including "60C(2)(c).", substitute:

the notice is prima facie evidence that the price for the supply did not pass through all of the entity's cost savings relating to the supply that were directly or indirectly attributable to the carbon tax repeal.

(29) Schedule 2, item 3, page 76 (line 15), omit "corporation", substitute "entity".

(30) Schedule 2, item 3, page 76 (line 16), omit "corporation", substitute "entity".

(31) Schedule 2, item 3, page 76 (line 21), omit "a corporation", substitute "an entity".

(32) Schedule 2, item 3, page 76 (line 23), omit "corporation", substitute "entity".

(33) Schedule 2, item 3, page 76 (line 27), omit "corporation", substitute "entity".

(34) Schedule 2, item 3, page 77 (line 5), omit "corporation", substitute "entity".

(35) Schedule 2, item 3, page 77 (line 12), omit "corporation", substitute "entity".

(36) Schedule 2, item 3, page 77 (after line 28), after Division 2, insert:

Division 2A—Carbon tax removal substantiation notices

60FA Carbon tax removal substantiation notices

Scope

(1) This section applies to an entity if the entity:

  (a) is an electricity retailer that sells electricity to electricity customers; or

  (b) is a natural gas retailer that sells natural gas to natural gas customers; or

  (c) is a bulk SGG importer that sells synthetic greenhouse gas to SGG customers.

Carbon tax removal substantiation notice

(2) The Commission must, within 30 days after the Royal Assent day, by written notice given to the entity, require the entity:

  (a) to give to the Commission, within the period specified in the notice, a written statement that explains:

     (i) how the carbon tax repeal has affected, or is affecting, the entity's regulated supply input costs; and

     (ii) how reductions in the entity's regulated supply input costs that are directly or indirectly attributable to the carbon tax repeal are reflected in the prices charged by the entity for regulated supplies of electricity, natural gas or synthetic greenhouse gas; and

  (b) to do either or both of the following:

     (i) give to the Commission, within the period and in the manner and form specified in the notice, information that substantiates the explanation set out in the statement;

     (ii) produce to the Commission, within the period and in the manner specified in the notice, documents that substantiate the explanation set out in the statement.

(3) A notice under subsection (2) is to be known as a carbon tax removal substantiation notice.

(4) A period specified in a carbon tax removal substantiation notice must be 21 days after the notice is given.

(5) A carbon tax removal substantiation notice must explain the effect of:

  (a) section 60FB; and

  (b) section 60FC; and

  (c) sections 137.1 and 137.2 of the Criminal Code.

Section does not limit section 60H

(6) This section does not limit section 60H (which is about the price-related information-gathering powers of the Commission).

Section does not limit section 155

(7) This section does not limit section 155 (which is about the general information-gathering powers of the Commission).

60FB Extending periods for complying with carbon tax removal substantiation notices

(1) An entity that has been given a carbon tax removal substantiation notice may, at any time within 14 days after the notice was given to the entity by the Commission, apply in writing to the Commission for an extension of the period for complying with the notice.

(2) The Commission may, by written notice given to the entity, extend the period within which the entity must comply with the notice, so long as the extension is for a period of not more than 28 days.

60FC Compliance with carbon tax removal substantiation notices

(1) An entity that is given a carbon tax removal substantiation notice must comply with it within the applicable compliance period for the notice.

(2) The applicablecompliance period for a carbon tax removal substantiation notice is:

  (a) the period of 21 days specified in the notice; or

  (b) if the period for complying with the notice has been extended under section 60FB—the period as so extended;

and includes (if an application has been made under section 60FB for an extension of the period for complying with the notice) the period up until the time when the applicant is given notice of the Commission's decision on the application.

(3) An entity commits an offence if:

  (a) the entity is subject to a requirement under subsection (1); and

  (b) the entity is capable of complying with the requirement; and

  (c) the entity omits to do an act; and

  (d) the omission breaches the requirement.

Penalty:   200 penalty units.

(4) Subsection (3) is an offence of strict liability.

Note: For strict liability, see section 6.1 of the Criminal Code.

(5) If subsection (3) of this section applies to an individual (whether or not because of subsection 6(2)), subsection (3) of this section has effect, in relation to the individual, as if the reference to 200 penalty units were a reference to 40 penalty units.

(6) If subsection (1) of this section applies to an individual (whether or not because of subsection 6(2)), the individual is excused from giving information or producing a document in accordance with a carbon tax removal substantiation notice on the ground that the information or the production of the document might tend to incriminate the individual or expose the individual to a penalty.

Division 2B—Carbon tax removal substantiation statements

60FD Carbon tax removal substantiation statements

Scope

(1) This section applies to an entity if the entity:

  (a) is an electricity retailer that sells electricity to electricity customers; or

  (b) is a natural gas retailer that sells natural gas to natural gas customers; or

  (c) is a bulk SGG importer that sells synthetic greenhouse gas to SGG customers.

Carbon tax removal substantiation statement

(2) Within 30 days after the Royal Assent day, the entity must give to the Commission:

  (a) a written statement that sets out:

     (i) if the entity has electricity customers—the entity's estimate, on an average annual percentage price basis, or an average annual dollar price basis, of the entity's cost savings that have been, are, or will be, directly or indirectly attributable to the carbon tax repeal and that have been, are being, or will be, passed on to each class of electricity customers during the financial year that began on 1 July 2014; and

     (ii) if the entity has natural gas customers—the entity's estimate, on an average annual percentage price basis, or an average annual dollar price basis, of the entity's cost savings that have been, are, or will be, directly or indirectly attributable to the carbon tax repeal and that have been, are being, or will be, passed on to each class of natural gas customers during the financial year that began on 1 July 2014; and

     (iii) if the entity has SGG customers—the entity's estimate, on an average annual percentage price basis, or an average annual dollar price basis, of the entity's cost savings that have been, are, or will be, directly or indirectly attributable to the carbon tax repeal and that have been, are being, or will be, passed on to each class of SGG customers during the financial year that began on 1 July 2014; and

  (b) information that substantiates the estimate or estimates set out in the statement.

Note: Section 137.1 of the Criminal Code creates an offence of providing false or misleading information.

(3) A statement under paragraph (2)(a) is to be known as a carbon tax removal substantiation statement.

(4) If the entity has given a carbon tax removal substantiation statementto the Commission, the entity must ensure that a copy of the statement is available on the entity's website, in a way that is readily accessible by the public, until the end of 30 June 2015.

Compliance

(5) An entity commits an offence if:

  (a) the entity is subject to a requirement under subsection (2) or (4); and

  (b) the entity is capable of complying with the requirement; and

  (c) the entity omits to do an act; and

  (d) the omission breaches the requirement.

Penalty:   500 penalty units.

(6) Subsection (5) is an offence of strict liability.

Note: For strict liability, see section 6.1 of the Criminal Code.

(7) If subsection (5) of this section applies to an individual (whether or not because of subsection 6(2)), subsection (5) of this section has effect, in relation to the individual, as if the reference to 500 penalty units were a reference to 40 penalty units.

(8) If subsection (2) of this section applies to an individual (whether or not because of subsection 6(2)), the individual is excused from giving an estimate or information under subsection (2) of this section on the ground that the estimate or information might tend to incriminate the individual or expose the individual to a penalty.

Section does not limit section 60H

(9) This section does not limit section 60H (which is about the price-related information-gathering powers of the Commission).

Section does not limit section 155

(10) This section does not limit section 155 (which is about the general information-gathering powers of the Commission).

Report to Parliament

(11) Within 13 months after the Royal Assent day, the Commission must report to Parliament in respect of compliance by all entities.

Division 2C—Statements for customers

60FE Statements for customers

Scope

(1) This section applies to an entity if the entity:

  (a) is an electricity retailer that sells electricity to electricity customers; or

  (b) is a natural gas retailer that sells natural gas to natural gas customers.

Preparation of statement

(2) Within 30 days after the Royal Assent day, the entity must prepare a statement that:

  (a) if the entity has electricity customers—identifies, on an average annual percentage price basis, or an average annual dollar price basis, the estimated cost savings, to each class of electricity customers, that:

     (i) have been, are, or will be, directly or indirectly attributable to the carbon tax repeal; and

     (ii) are for the financial year that began on 1 July 2014; and

(b) if the entity has natural gas customers—identifies, on an average annual percentage price basis, or an average annual dollar price basis, the estimated cost savings, to each class of natural gas customers, that:

     (i) have been, are, or will be, directly or indirectly attributable to the carbon tax repeal; and

     (ii) are for the financial year that began on 1 July 2014.

Communication of contents of statement to customers

(3) During the period:

  (a) beginning 30 days after the Royal Assent day; and

  (b) ending 60 days after the Royal Assent day;

the entity must ensure that the contents of the statement prepared by it under subsection (2) that relates to a class of electricity customers or natural gas customers is communicated to each customer of that class.

Note: Section 137.1 of the Criminal Code creates an offence of providing false or misleading information.

Compliance

(4) An entity commits an offence if:

  (a) the entity is subject to a requirement under subsection (2) or (3); and

  (b) the entity is capable of complying with the requirement; and

  (c) the entity omits to do an act; and

  (d) the omission breaches the requirement.

Penalty:   400 penalty units.

(5) Subsection (4) is an offence of strict liability.

Note: For strict liability, see section 6.1 of the Criminal Code.

(6) If subsection (4) of this section applies to an individual (whether or not because of subsection 6(2)), subsection (4) of this section has effect, in relation to the individual, as if the reference to 400 penalty units were a reference to 40 penalty units.

(7) If subsection (2) or (3) of this section applies to an individual (whether or not because of subsection 6(2)), the individual is excused from:

  (a) preparing a statement under subsection (2) of this section; or

  (b) communicating the contents of a statement under subsection (3) of this section;

on the ground that the information in the statement might tend to incriminate the individual or expose the individual to a penalty.

(37) Schedule 2, item 3, page 78 (line 7), omit "corporations", substitute "entities".

(38) Schedule 2, item 3, page 78 (line 17), omit "corporations", substitute "entities".

(39) Schedule 2, item 3, page 78 (line 21), omit "a corporation", substitute "an entity".

(40) Schedule 2, item 3, page 78 (line 30), omit "a corporation", substitute "an entity".

(41) Schedule 2, item 3, page 79 (line 3), omit "a corporation", substitute "an entity".

(42) Schedule 2, item 3, page 79 (line 8), omit "corporations", substitute "entities".

(43) Schedule 2, item 3, page 79 (line 18), omit "corporations", substitute "entities".

(44) Schedule 2, item 3, page 79 (line 23), omit "a corporation", substitute "an entity".

(45) Schedule 2, item 3, page 79 (lines 32 and 33), omit "a corporation", substitute "an entity".

(46) Schedule 2, item 3, page 81 (after line 21), after subsection 60H(5), insert:

Section does not limit section 60FA

  (5A) This section does not limit section 60FA (which is about carbon tax removal substantiation notices).

(47) Schedule 2, item 3, page 82 (line 23), omit "A corporation", substitute "An entity".

(48) Schedule 2, item 25, page 90 (line 24), omit "section", substitute "paragraph 60FD(2)(b) or section 60FA or".

Mark Butler (Port Adelaide, Australian Labor Party, Shadow Minister for Environment, Climate Change and Water) Share this | Link to this | Hansard source

Earlier today I circulated amendments in the same format that they were circulated when this package of bills was last debated before the House. As the Speaker pointed out in some part during this debate, those amendments were in a different form to the amendments moved in December because of the particular standing order that the Speaker ruled on at that time in December, and I want to acknowledge the point the Speaker rightly made. It is worth making a few comments about an emissions trading scheme that has been moved. I move opposition amendments (1) to (4) to the Clean Energy Legislation (Carbon Tax Repeal) Bill 2014 together:

(1) Title, page 1 (line 1), omit "repeal", substitute "amend".

(2) Clause 2, page 1 (line 7) to page 2 (line 6), omit the clause, substitute:

2 Commencement

     This Act commences on the day after this Act receives the Royal Assent.

(3) Schedule 1, page 4 (line 1) to page 70 (line 21), omit the Schedule, substitute:

Schedule 1—Amendments

Australian National Registry of Emissions Units Act 2011

1 Subsection 66F(2) (paragraph (b) of the definition of prescribed amount for the financial year in which the compliance deadline occurs )

  Omit "31 July 2014", substitute "31 October 2014".

2 Subsection 66F(2) (paragraph (c) of the definition of prescribed amount for the financial year in which the compliance deadline occurs )

  Repeal the paragraph.

3 Subsection 66F(4) (paragraph (b) of the definition of prescribed amount for the financial year in which the compliance deadline occurs )

  Omit "31 July 2014", substitute "31 October 2014".

4 Subsection 66F(4) (paragraph (c) of the definition of prescribed amount for the financial year in which the compliance deadline occurs )

  Repeal the paragraph.

Clean Energy Act 2011

5 Section 4

  Omit ", 1 July 2013 and 1 July 2014", substitute "and 1 July 2013".

6 Section 4

  Before "1 July 2015", insert "1 July 2014,".

7 Section 5 (definition of fixed charge year )

  Repeal the definition, substitute:

  fixed charge year means:

  (a) the eligible financial year beginning on 1 July 2012; or

  (b) the eligible financial year beginning on 1 July 2013.

For the purposes of paragraph (b), the months of July, August and September 2014 are taken to be part of the financial year beginning on 1 July 2013.

8 Section 5 (definition of flexible charge year )

  Repeal the definition, substitute:

  flexible charge year means:

  (a) the eligible financial year beginning on 1 July 2014; or

  (b) a later eligible financial year.

For the purposes of paragraph (a), the months of October, November and December 2014, and January, February, March, April, May and June 2015, are taken to be the financial year beginning on 1 July 2014.

9 After paragraph 14(2)(b)

  Insert:

  (ba) if the regulations declare the carbon pollution cap, and the carbon pollution cap number, for the flexible charge year beginning on 1 July 2014—must have regard to any report that:

     (i) was given to the Minister by the Climate Change Authority under section 60 of the Climate Change Authority Act 2011; and

     (ii) dealt with the carbon pollution cap for that year; and

10 At the end of subsection 15(1)

  Add "(other than regulations that declare the carbon pollution cap, and the carbon pollution cap number, for the flexible charge year beginning on 1 July 2014)".

11 After section 15

  Insert:

15A When regulations must be tabled—2014 -15 flexible charge year

Scope

(1) This section applies to regulations that declare the carbon pollution cap, and the carbon pollution cap number, for the flexible charge year beginning on 1 July 2014.

When regulations must be tabled

(2) The Minister must take all reasonable steps to ensure that the regulations are tabled in each House of the Parliament under section 38 of the Legislative Instruments Act 2003 not later than 31 August 2014.

(3) The regulations must not be made, or tabled in a House of the Parliament, after 31 August 2014.

Reasons must be tabled

(4) If, on a particular day (the tabling day), a copy of the regulations is tabled in a House of the Parliament under section 38 of the Legislative Instruments Act 2003, the Minister must:

  (a) cause to be tabled in that House a written statement setting out the Minister's reasons for making the recommendation to the Governor-General about the regulations; and

  (b) do so on, or as soon as practicable after, the tabling day.

12 Section 16 (at the end of the heading)

  Add "—later flexible charge years".

13 Subsections 16(1) and (2)

  Omit "31 May 2014", substitute "30 November 2014".

14 Subsection 16(3)

  Omit "of May that is 14 months before the start of a particular flexible charge year beginning on or after 1 July 2016, no regulations made for the purposes of section 14", substitute "of November that is 8 months before the start of a particular flexible charge year beginning on or after 1 July 2016, no regulations to which section 15 applies".

15 Subsection 16(3)

  Omit "that May", substitute "that November".

16 Subsection 16(4)

  Omit "the May", substitute "the November".

17 Section 17 (heading)

  Omit "2015-16", substitute "2014-15".

18 Subsection 17(1)

  Omit "1 July 2015", substitute "1 July 2014".

19 Subsection 17(2) (formula)

  Repeal the formula, substitute:

20 Subsection 18(1)

  Omit "1 July 2016", substitute "1 July 2015".

21 Section 93

  Before "1 July 2015", insert "1 July 2014,".

22 Subsection 100(1)

  After "following table", insert "(other than an exempt item)".

23 Subsection 100(1) (table items 5 and 6)

  Repeal the items.

24 Subsection 100(1) (table items 7, 8 and 9)

Repeal the items, substitute:

25 Subsection 100(1) (note)

  Omit "Note", substitute "Note 1".

26 At the end of subsection 100(1) (after the note)

  Add:

Note 2: For exempt item, see subsections (13A), (13B) and (13C).

27 Subsection 100(2)

  Omit "item 7, 8 or 9", substitute "item 7, 8, 9 or 10".

28 Subsection 100(3) (heading)

  Omit "items1, 3 and 5", substitute "items1 and 3".

29 Subsection 100(3)

  Omit "item 1, 3 or 5", substitute "item 1 or 3".

30 Subsection 100(4) (heading)

  Omit "6, 7, 8 and 9", substitute "7, 8, 9 and 10".

31 Subsection 100(4)

  Omit "item 2, 4, 6, 7, 8 or 9", substitute "item 2, 4, 7, 8, 9 or 10".

32 Subsection 100(6)

  After "subsection (1)", insert "(other than an exempt item)".

33 At the end of subsection 100(6)

  Add:

Note: For exempt item, see subsections (13A), (13B) and (13C).

34 Before paragraph 100(9)(a)

  Insert:

  (aa) the eligible financial year beginning on 1 July 2014;

35 After subsection 100(13)

  Insert:

Exempt item

  (13A) The regulations may declare that item 8 of the table in subsection (1) is an exempt item for the purposes of this section.

  (13B) The regulations may declare that item 9 of the table in subsection (1) is an exempt item for the purposes of this section.

  (13C) The regulations may declare that item 10 of the table in subsection (1) is an exempt item for the purposes of this section.

36 Subsection 100(14)

  Omit "31 May 2014", substitute "31 August 2014".

37 Subsection 100(15)

  Repeal the subsection.

38 Before subsection 101(1A)

  Insert:

  (1AA) Subsection (1) does not apply to carbon units with the vintage year beginning on 1 July 2014 that are issued as a result of auctions that are conducted by the Regulator during the financial year beginning on 1 July 2013.

  (1AB) The Regulator must ensure that not more than 40 million carbon units with the vintage year beginning on 1 July 2014 are issued as a result of auctions that were conducted by the Regulator during the financial year beginning on 1 July 2013 if there are no regulations in effect that declare the carbon pollution cap, and the carbon pollution cap number, for the vintage year.

39 At the end of subsection 111(3)

  Add "However, for the eligible financial year beginning on 1 July 2014, the charge for the issue of a carbon unit may not be more than $25.40.".

40 Subsection 121

  Omit "first 5 flexible charge years", substitute "first 6 flexible charge years".

41 Subsection 123A(3)

  Omit "1 July 2015", substitute "1 July 2014".

42 Subparagraph 123A(6)(a)(i)

  Omit "1 July 2015", substitute "1 July 2014".

43 Subparagraphs 123A(6)(b)(i) and (ii)

  Repeal the subparagraphs, substitute:

     (i) if the eligible financial year begins on 1 July 2014—6.25%; or

     (ii) if the eligible financial year begins on 1 July 2015, 1 July 2016, 1 July 2017, 1 July 2018 or 1 July 2019—12.5%; or

     (iii) if the eligible financial year begins on or after 1 July 2020, and the regulations do not specify a percentage for that year—12.5%; or

     (iv) if the eligible financial year begins on or after 1 July 2020, and the regulations specify a percentage for that year—that percentage; and

44 Subsection 123A(7)

  Omit "(6)(b)(ii)", substitute "(6)(b)(iv)".

45 Subparagraphs 133(7)(a)(i) and (7A)(a)(i)

  Omit "1 July 2015", substitute "1 July 2014".

46 Subparagraph 133(7A)(a)(ii)

  Omit "4", substitute "5".

47 Subparagraph 133(7E)(a)(i)

  Omit "1 July 2015", substitute "1 July 2014".

48 Subparagraph 133(7E)(a)(ii)

  Omit "4", substitute "5".

49 Subparagraph 133(7F)(a)(i)

  Omit "1 July 2015", substitute "1 July 2014".

50 Section 160

  Omit "each of the next 3 financial years", substitute "the financial year beginning on 1 July 2014".

51 Subsection 161(2)

  Omit all the words from and including "On each" to and including "the following formula", substitute "On 1 September in the eligible financial year beginning on 1 July 2013, the Regulator must issue a number of free carbon units equal to the number worked out using the following formula".

52 Subsection 161(3) (formula)

  Repeal the formula, substitute:

53 Subsection 196(1AA) (heading)

  Omit "11 months", substitute "8 months".

54 Subsection 196(1AA) (definition of number of units issued as the result of auctions )

  Omit "11-month period", substitute "8-month period".

55 Subsection 196(1AA) (definition of total auction proceeds )

  Omit "11-month period", substitute "8-month period".

56 Paragraph 196(1)(a)

  Omit "May 2016", substitute "May 2015".

57 Paragraph 196(2)(a)

  Omit "November 2015", substitute "November 2014".

58 Paragraph 196(3)(a)

  Omit "1 July 2015", substitute "1 July 2014".

59 Subsection 196A(18) (paragraph (c) of the definition of designated 6 -month period )

  Omit "November 2015", substitute "November 2014".

60 Subsection 212(2) (paragraph (b) of the definition of prescribed amount for the financial year in which the compliance deadline occurs )

  Omit "31 July 2014", substitute "31 October 2014".

61 Subsection 212(2) (paragraph (c) of the definition of prescribed amount for the financial year in which the compliance deadline occurs )

  Repeal the paragraph.

62 Subsection 212(3) (paragraph (b) of the definition of prescribed amount for the financial year in which the compliance deadline occurs )

  Omit "31 July 2014", substitute "31 October 2014".

63 Subsection 212(3) (paragraph (c) of the definition of prescribed amount for the financial year in which the compliance deadline occurs )

  Repeal the paragraph.

64 Subsection 289(8)

  Repeal the subsection, substitute:

Report

(8) The report of the first review must set out recommendations relating to the level of carbon pollution caps for each of the following flexible charge years:

  (a) the eligible financial year beginning on 1 July 2015;

  (b) the eligible financial year beginning on 1 July 2016;

  (c) the eligible financial year beginning on 1 July 2017;

  (d) the eligible financial year beginning on 1 July 2018;

  (e) the eligible financial year beginning on 1 July 2019.

(4) Schedules 2 to 5, page 71 (line 1) to page 94 (line 4), omit the Schedules.

Adam Bandt (Melbourne, Australian Greens) Share this | Link to this | Hansard source

I move Australian Greens amendments (1) and (2) to the Clean Energy Legislation (Carbon Tax Repeal) Bill 2014 together:

(1) Clause 2, page 2 (table item 9), omit the table item.

(2) Schedule 5, page 93 (line 1) to page 94 (line 4), omit the Schedule.

Greg Hunt (Flinders, Liberal Party, Minister for the Environment) Share this | Link to this | Hansard source

The government is moving these amendments to provide greater clarity on how business should pass on all carbon tax repeal savings. We are doing it to make sure that there is no doubt that Australian families, Australian businesses and Australian pensioners will receive the full benefit of the carbon tax repeal. The amendment complements the already existing powers that the ACCC has been given by the government through the broader legislative repeal package. In particular, the amendments moved here include guarantees that large retailers of regulated goods, electricity and natural gas, and bulk importers of synthetic greenhouse gases must pass on all cost savings. They introduce a penalty on electricity and natural gas retailers and bulk importers of synthetic greenhouse gases equal to 250 per cent of any cost savings they do not pass on, and they require electricity and natural gas retailers and bulk importers of synthetic greenhouse gases to inform the ACCC and customers as to how they are passing on cost savings.

The amendments will ensure there is no doubt as to who is covered by the obligations regarding electricity, gas and synthetic greenhouse gas bulk importers. The changes to the bill balance new compliance obligations with the need to ensure that household and business customers benefit. They are a light touch approach, but they carry with them an extra capacity. Businesses should be able to explain to customers how changes in their costs are flowing through to changes in their prices. The government is aware that major electricity and gas retailers are already committed to providing this information to households and businesses on bills, inserts and websites.

For the purposes of the Acts Interpretation Act 1901, I confirm that the definition of electricity retailer is limited to electricity retailers and electricity producers selling electricity into a wholesale electricity market to a retailer. By agreement, this is not intended to override any pre-existing contract. For the purposes of the Acts Interpretation Act 1901, I also confirm that bulk importers of synthetic greenhouse gas defined under section 13A(2)(c) of the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 are covered by the new requirements. The cost of synthetic greenhouse gases was significantly impacted by the carbon tax; therefore, to minimise the cost of compliance, small imports of synthetic greenhouse gases—such as imports of synthetic greenhouse gas contained in equipment such as refrigerators, cars and air conditioners—are not covered.

In finishing this debate for the government, I wish to make two points. Firstly, I wish to think the ACCC, which I have not previously thanked, as a professional, independent organisation led by Rod Sims and Brenton Philp. They have provided invaluable impartial and professional policy advice. Secondly, I want to take a different tack to what has characterised much of this debate. There is much agreement across this chamber and across this parliament and much goodwill about reducing emissions, and we should always remember that the commitment on both sides of this chamber is to reduce emissions in the lowest cost way. We disagree on the mechanisms—we have voted on the mechanisms, the community has voted on the mechanisms—but the intention is clear: to reduce our emissions, but to find a way that does it which is cost-effective and which is effective in actually reducing those emissions. For all of these reasons, I commend the bills and I commend the amendments to the House.

Mark Butler (Port Adelaide, Australian Labor Party, Shadow Minister for Environment, Climate Change and Water) Share this | Link to this | Hansard source

I will make some remarks about the government's amendments, which we have only been able to look at in the last hour or two. As I think was mentioned earlier in the debate, there has obviously been a deal of discussion about this over the past three or four days, since the debacle in the Senate last week. We are now a little bit clearer on quite how wide the scope of the guarantee of any price reductions that would flow from these repeal bills passing would be for Australian households—it is quite clear that it is a pretty narrow scope—and also on what the range of businesses would be who would be involved in the quite significant compliance obligations that are included in this deal that the government has now done with the Palmer United Party.

What is clear looking at these amendments is that the legal obligations apply to a very limited number of businesses in the electricity, the gas and the SGG industries. That is fine, so far as it goes, and the opposition can indicate that we will be supporting these amendments. But let us be crystal clear about this: these amendments do not in any way come close to matching up to the claims made and the commitments given by the now Prime Minister when he was the Leader of the Opposition about what the impact of a carbon price mechanism would be, or was, in the grocery sector, in the airline sector, in the housing construction sector, in the farm sector and many others beside. They do not come close to matching those claims and they certainly do not do anything to deliver the commitment that the Prime Minister made in all of those sectors that what apparently went up—not that we accept that they did go up—would come down and that here would be enforcement mechanisms put in place to ensure that those prices came down.

We had a discussion about this in question time. Deputy Speaker Vasta, you would remember that the Prime Minister, when he was Leader of the Opposition, claimed that the carbon price mechanism would result in grocery bills going up by $10 per week—a claim not echoed or reflected in any other advice or modelling able to be found, but a claim made very clearly by that then Leader of the Opposition, along with a guarantee that these repeal bills would deliver a commensurate reduction in grocery bills. There is nothing in the amendments that in any way obliges Woolworths, Coles or any other retailer to deliver any price reduction whatsoever. There is nothing in the amendments that obliges an airline to deliver any price reduction, that obliges the housing industry to deliver the $6,000 reduction in new house prices that the Prime Minister again committed to in question time today. So we will support the amendments, but it must be clearly stated that the amendments do not reflect the hyperbole, the overreach, the hysterical claims and commitments made by this Prime Minister when he was the Leader of the Opposition.

Given that this is the third time these bills have come through this House, I have had many an occasion to talk about Labor's ETS amendment. Every time we have occasion to debate this, the case for an emissions trading scheme becomes stronger because increasingly around the world this is being recognised as the best policy response to the challenge of climate change that exists. The combination of rigour around carbon pollution in the form of a legal cap that is calibrated to our international commitments around reducing carbon pollution along with a market mechanism—not a series of decisions made in the minister's office or the Prime Minister's office, but a true market mechanism where business works out the cheapest and most effective way to operate within this cap—is not only the mechanism that has been put in place for some years now in our oldest trading partners, like the United Kingdom, France, Germany and many parts of North America, such as California, many states in the north-east of the United States and Canadian provinces. We are also seeing it in our own region, most importantly in China, our largest trading partner. South Korea, our third-largest export partner, will be commencing a very significant national emissions trading scheme in only a matter of five or six months.

This is the policy we took to the election. It is the right policy for Australia. It is pretty clear that it will not be carried by the parliament today, but the Labor Party is very clear: this is the type of response Australia will eventually come to—maybe not under this Prime Minister but under a more far-sighted one than we have today.

Tim Watts (Gellibrand, Australian Labor Party) Share this | Link to this | Hansard source

The amendments being considered before the House today are just further evidence of this government's shameful abrogation of its responsibility to future generations of Australians. The fact is Lord Deben, the former environment minister in the Thatcher government, has said:

I think future generations will ask ‘what did you do to stop the world being overwhelmed by climate change?’ Mr Abbott—

the Prime Minister—

will have to answer that and I don’t know how he can look children in the eye.

Nowhere is this more clearly seen than in the government's Direct Action plan. Of course, this is all we are left with in response to climate change, given the fact that Labor's amendments to establish an ETS—the same policy we took to the last election—will not be supported today. It is the whitest of white elephants, the most tepid of token efforts which will do nothing for climate change and cost the Australian people billions of dollars.

After rolling his colleague Malcolm Turnbull as Liberal leader on the issue of climate change, the now Prime Minister realised he better have some sort of response to what President Obama has called one of the most significant long-term challenges, if not the most significant long-term challenge, that the planet faces. But, as so often happens, he spoke first and thought later.

Rather than consulting widely with economists and environmental experts, he cobbled together a 1950s era policy and gave it a 1950s name—Direct Action. When released, the policy was widely condemned by economists and environmental groups as being both ineffective and expensive. It is worth reflecting in this debate on the comments at a time from the member for Wentworth about the policy farce that we are left with today. The member for Wentworth belled the cat in 2009 when he stated:

The Liberal Party is currently led by people whose conviction on climate change is that it is "crap" and you don't need to do anything about it. Any policy that is announced will simply be a con, an environmental fig leaf to cover a determination to do nothing.

Quite a contrast with the statements the Minister for the Environment made earlier!

The Abbott opposition did have three years to listen to the experts and the response that Direct Action received after it was initially announced. They had a chance to formulate a policy that may have actually been effective. Of course, they were not interested. They had their fig leaf on climate policy. They would hold onto it without shame even when it did less to cover up their climate cowardice than a pair of red Speedos. Unfortunately, it underwent very little change in the following three years. There was no research produced to demonstrate the policy's effectiveness; no modelling released to demonstrate the impact it would have on carbon emissions. Even Liberal backbenchers questioned its effectiveness, with Liberal MP Mal Washer claiming in May 2013, 'if we are not going to get a big environmental bang for our buck, then we ought not to do it'. The member for Tangney admitted at the same time that the Direct Action Plan was 'not optimal policy' and argued, 'I think there is room to manoeuvre, after the election, on direct action'. Sadly, the only manoeuvres we have seen recently have been with the Palmer United Party, and they have not been on the direct action policy.

As with many of Tony Abbott's signature policies, this criticism was not limited to the party floor. Liberals of all stripes came out against the policies, including the patron of many of those opposite and former Treasurer, Peter Costello, who criticised the affordability of the scheme. The Abbott government continued to ignore the strident criticism from both sides of the political plan, and stuck with its direct-action albatross. However, once the coalition won government, it was time to turn this afterthought of an election promise into a coherent government policy for combating climate change. During the implementation process we have seen not only the results of this shoddy policy but also its smokescreen effect—it has turned a small farming program, the Carbon Farming Initiative, into a showpiece of the coalition's climate change policy: the Emissions Reduction Fund. Even this fund is riddled with policy errors. It is a fund that is missing key elements as to how it will operate, such as how historical baselines are set and how credits are to be calculated. It is a fund that takes control of key aspects away from an independent body and gives that control to a very partisan minister—key aspects such as eligibility for the funds allocated, and the calculation of carbon credits. It is a fund that is not even clear about how much money it has to spend.

The most damning entitlement of this policy is that there are no binding caps whatsoever. The money spent under their direct action policy could be spent on magic beans, for all those opposite care. Magic beans do nothing to reduce our carbon emissions in this country but cost the taxpayer billions at the end of the day. The coalition's direct action policy is a poorly modelled piece of policy which has been roundly condemned by experts around the country. A senate inquiry into the Emissions Reduction Fund firmly recommended that the government not proceed with this unfortunate policy. Expert after expert in this inquiry reiterated how ineffective and expensive the scheme would be. Not one single expert called to the inquiry supported the government's plans, or expressed the belief that it would enable the government to reach its emissions reductions targets. Even the government's own department has expressed disbelief, and at a recent senate estimates hearing admitted that they are unable to confirm the policy will reach their targets—it just does not add up to a pile of magic beans, Mr Speaker.

Adam Bandt (Melbourne, Australian Greens) Share this | Link to this | Hansard source

History will condemn this government; and I feel extraordinarily proud to have voted to keep the world-leading price on pollution that we have. I rise to speak on the Greens amendments to the Clean Energy Legislation (Carbon Tax Repeal) Amendment Bill 2014. Much of the debate so far on this bill and related bills has centred around the price on pollution, but there is one other aspect to this bill that deserves attention. ARENA, the Australian Renewable Energy Agency, is doing amazing work. If you ever wanted an example of 'direct action' in practice, it is ARENA.

ARENA is an organisation that was established at the Greens' request, under the previous arrangement reached with the Labor government, to ensure that $3 billion would be put aside to develop renewable energy in this country, especially that early-stage research. That agency now exists—at arm's length from a minister, so it cannot be politicised—and it is driving solar, wind and other forms of renewable energy in Australia. Of the initial $3-billion budget, $1.8 billion will be lost if this bill goes ahead—that is, $717 million over the next three years. Where is that money being spent? What are the kinds of things that ARENA is doing which will be at risk if the amendments I have moved to this bill are not passed? Well, just recently, researchers in New South Wales found a way to heat steam, using solar, to a point where that steam was able to drive turbines. What does that mean? It means that, if this technology is able to be proven and commercialised, existing coal-fired power stations could be run by solar—the existing turbines in those stations could be powered by steam produced by the sun. That is just one of ARENA's projects. There are 64 solar projects going on around the country: 14 bioenergy, 19 hybrid projects, six ocean and wave projects, and six geothermal projects—all being supported by ARENA.

Seventy per cent of ARENA funding has gone to regional and rural Australia. Members opposite who represent those regional and rural electorates where this money is going—and driving the shift to renewable energy, and actually making a difference—are about to cut $1.8 billion from their communities.

What ARENA is doing is the first stage in the chain: helping research into renewable technologies—things like storage, geothermal and solar— so that Australia can become a renewable energy world leader. And then, when those projects are proven to work, some of those projects can then go and get funding from the second stage—the Clean Energy Finance Corporation. What we have at the moment is, in fact, an ecosystem that supports the development and then the commercialisation of clean and renewable energies in this country. Whatever your ideological commitment to repealing the carbon tax—or however you want to put it—I do not think that people knew, at the election, that they were voting for ripping out $1.8 billion from solar and geothermal energy around this country. That is not what they voted for. That was not put up in lights in the coalition's policy.

Whatever one thinks about the other matters before us here today, I urge the House to support the amendments that will restore the funding to ARENA. We know now, because of a decision made by senators in the other place, that ARENA is going to stay. The government's efforts to repeal and abolish ARENA through separate legislation will not work. Given that ARENA is going to stay, we now need to give it back the funding that it was relying on—so that solar, geothermal and wave power in Australia can become world-leading.

I have had the privilege of meeting a number of people in the course of my time here. One of them was the climate adviser to the G8, and to Angela Merkel, who said: 'We Germans look at you Australians, and we cannot understand, with all your sun and your wind and your waves, why you are not leading the world in renewable energy.' Well, keep ARENA—and maybe we can.

Greg Hunt (Flinders, Liberal Party, Minister for the Environment) Share this | Link to this | Hansard source

I move that

The questions be now put.

The DEPUTY SPEAKER (17:47): The question now is that the government amendments moved by the Minister for the Environment be agreed to.

Question agreed to.

Ross Vasta (Bonner, Liberal Party) Share this | Link to this | Hansard source

The question now is that the amendments moved by the member for Port Adelaide be agreed to.

Brett Whiteley (Braddon, Liberal Party) Share this | Link to this | Hansard source

The question is that the amendments moved by the member for Melbourne be agreed to.

Brett Whiteley (Braddon, Liberal Party) Share this | Link to this | Hansard source

The question is that Clean Energy Legislation (Carbon Tax Repeal Bill) 2014 as amended, and related bills, be agreed to.