Nick Sherry (Tasmania, Australian Labor Party, Assistant Treasurer) Share this | Hansard source

I will get to that in a moment. The Greenhouse Challenge Plus program provision in the Fuel Tax Act was originally included so that large fuel users would monitor and take measures to reduce their carbon emissions. This outcome will be better achieved through the government’s Carbon Pollution Reduction Scheme. Without this amendment—this is a cross-reference amendment—business would be unable to claim fuel tax credits in excess of $3 million in a financial year after 30 June 2009. This would be inconsistent with the policy intent of the fuel tax credits system. As I have mentioned, a condition that businesses may not claim more than $3 million worth of fuel tax credits in a financial year unless they are a member of the Greenhouse Challenge Plus, GCP, was included in the Fuel Tax Act 2006 so that large fuel users would monitor and take measures to reduce their carbon emissions.

In November 2008, Minister Garrett advised that Greenhouse Challenge Plus, GCP, will lapse after 30 June 2009. So this was announced some seven months ago. The GCP commenced in 1995 and was always scheduled to finish and lapse in mid-2009. There is no legislation required; it lapses automatically. The lapsing of the GCP was supported by the Wilkins review of Australian government climate change programs. The key elements of the Greenhouse Challenge Plus program—emissions, inventory reporting and assisting companies in reducing their greenhouse emissions—have been superseded by the National Greenhouse and Energy Reporting System, NGERS, and the Climate Change Action Fund, CCAF, respectively. So that is what has replaced it, Senator Xenophon. This is a removal of a cross-reference to the Fuel Tax Act. This act does not bring to an end Greenhouse Challenge Plus. That is coming to an end via another mechanism. The GCP required reporting on (1) emissions and (2) any reduction programs from 1 July 2008. Large fuel users are required by the National Greenhouse and Energy Reporting System to report on these emissions.

So that is the explanation. I thank Senator Xenophon for his brief and probing question and I thank Senator Milne. I acknowledge her longstanding interest in, particularly, peak oil. I have heard her contributions on many occasions—and she has a perfect right to raise them. I understand the reasons she has done so; however, the particular concern around Greenhouse Challenge Plus lapsing—not being brought to an end by this legislation—is not directly relevant to any actions that flow from this particular piece of legislation. I thank senators for their contribution and commend the bill to the Senate.

Question agreed to.

Bill read a second time.