Penny Wong (SA, Australian Labor Party, Minister for Climate Change and Water) Share this | Hansard source

As I have previously indicated in this place, the government has released quite substantial modelling—from recollection in October last year—on the likely impacts of the introduction of a carbon price on a whole range of matters. My recollection is that I have previously indicated in this place that over the first two years of the CPRS we would anticipate a CPI impact of about 1.2 per cent, of which 0.1 per cent would reflect increases in food prices. I would make the point that it is the case that there will be price impacts as a result of putting a cost on something where there has not been one previously—that is, carbon. The government has never shied away from that. In fact, the government has been up front about this, including in providing the largest proportion of assistance under the scheme to households. Senators may recall that last year, when the Prime Minister announced the white paper, the majority—I think some 50 per cent—of the income received by government from the auction of permits under the emissions trading scheme would be provided to Australian households targeting particularly low-income households and middle-income households.