Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Hansard source

As I said, I congratulate Senator Singh on her first question in this place. I am sure she will make an outstanding contribution to this place on behalf of her state and on behalf of the Australian Labor Party. I am very pleased to take the opportunity to respond to the senator about why it is important for us to price carbon and why we must reduce pollution. The government plans to ensure we do this in a way that very much recognises Labor values.

As the Prime Minister has said, on Sunday the government will announce the full details of the carbon-pricing package. The government is pursuing a market mechanism for putting a price on pollution because this is the most effective way to reduce pollution. As we have approached the path of designing this package and the challenge of tackling climate change, as always we are guided by our Labor values of fairness and equity. That is why we have been working to ensure that in this package nine out of 10 households—some seven million households—get assistance through tax cuts or increases to payments or a combination of both. The vast majority of these households will not pay an additional cent as a result of pricing carbon. In addition, as we have made clear, we will put in place a buffer for three million low-income households of 20 per cent. We have made commitments to pensioners and to self-funded retirees who hold Commonwealth healthcare cards that they will also get assistance.

This is a big reform, but it is a necessary reform. It is important we price pollution so we can reduce it, it is important we price pollution so we can drive investment in clean energy and it is important we price pollution to recognise our responsibility for future generations. (Time expired)