Mitch Fifield (Victoria, Liberal Party, Assistant Minister for Social Services) Share this | Hansard source

I move:

That these bills be now read a second time.'

I seek leave to have the second reading speeches incorporated in Hansard.

Leave granted.

The speeches read as follows—

CLEAN ENERGY LEGISLATION (CARBON TAX REPEAL) BILL 2013 [No.2]

Today the government reintroduces the Clean Energy Legislation (Carbon Tax Repeal) Bill 2013.

As I said on 12 November 2013, when I introduced this bill for the first time, the Australian people have already voted on this bill.

Now the parliament again gets its chance. The people have spoken.

Now, it's up to this Parliament to show that it's listened.

The Australian people pronounced their judgment against the Carbon Tax: they want it gone and this bill delivers.

It delivers on the Coalition's commitment to the Australian people to scrap this toxic tax.

Madam Speaker, the Budget we delivered recently was tough but visionary. It was about setting the country on a path to long-term structural change.

But, a cornerstone of the Government's plan for a stronger economy built on lower taxes, less regulation and stronger businesses is the repeal of the carbon tax.

The first impact of this bill will be on households whose overall costs will fall around $550 a year on average.

Because of this bill, household electricity bills will be around $200 lower next financial year without the Carbon Tax.

Household gas bills will be around $70 lower next financial year without the Carbon Tax.

Prices for groceries, for household items and for services will also fall because the price of power is embedded in every price in our economy.

This is a bill to reduce the bills of the people of Australia.

When the price of power comes down, Madam Speaker, the Australian Competition and Consumer Commission will be ready to ensure these price reductions are passed on to households and businesses.

But families and pensioners will keep the tax cuts and benefit increases already provided.

The Carbon Tax will go, but the carbon tax compensation will stay so that every Australian should be better off.

Repealing the Carbon Tax will reduce costs for all Australian businesses, every single one of them.

Madam Speaker the previous Government said and argued that only big business paid the Carbon Tax.

That simply wasn't true. Every small business paid the Carbon Tax through higher electricity and gas bills and higher costs for supplies.

As well, Madam Speaker, the Carbon Tax acts as a reverse tariff.

Not only does the Carbon Tax make it more difficult for Australian businesses to compete abroad, it makes it more difficult for domestic businesses to compete at home – because there is no Carbon Tax on imports.

Madam Speaker, repealing the Carbon Tax removes over 1,000 pages of primary and subordinate legislation.

Repealing the Carbon Tax cuts the size of the climate change bureaucracy.

So, repealing the Carbon Tax will reduce the cost of living, make jobs more secure and improve the competitive position of our country.

That's what it does: it reduces the cost of living, it makes jobs more secure and improves the competitive position of our country.

Why would anyone be against that, particularly when it's what the Australian people have voted for?

Madam Speaker, repealing the Carbon Tax is what the employers and what the jobs providers of our country want now.

The Business Council of Australia ―supports the wind-up of the current carbon pricing mechanism because it places excessive costs on business and households and because (our) carbon charge...is now one of the highest in the world.

The carbon tax has ripped through the economy, hitting schools, hospitals, nursing homes, charities, churches, council swimming pools and community centres.

It has hit each and every group and each and every individual that uses power – and that was always its goal: to make electricity more expensive.

That was the intention of the previous government, to put power prices up because that was their way of reducing carbon emissions.

The intention of the new government is to put power prices down by axing this toxic tax and by using other means to reduce emissions.

By reducing the cost of electricity and gas, we will help to make households better off, workers more secure and our economy stronger.

No one should be in any doubt – the Government is repealing the Carbon Tax in full.

We are doing what we were elected to do.

Others have said they would terminate the Carbon Tax, but they were only renaming it.

Well, Madam Speaker, we are not renaming it. We are abolishing the Carbon Tax in full.

Madam Speaker, repealing the Carbon Tax at the end of the financial year provides certainty for business and it simplifies the transition.

It means that this Government will not be proceeding with the previous Government's legislated Carbon Tax increase that would have taken effect from the 1 July.

Madam Speaker, unfortunately, the new Government cannot undo the past, we can only make the future better – and that is what we intend to do.

Madam Speaker, under this Government, the Carbon Tax will not apply from 1 July so there will be no need for further compensation packages.

We will end the merry-go-round of Carbon Tax industry assistance that takes from one pocket and puts less back in the other.

Madam Speaker, we will ensure that the benefits of repealing the Carbon Tax are passed on to consumers.

The ACCC will have further powers to take action against any business that engages in price exploitation in relation to the Carbon Tax repeal.

Penalties of up to $1.1 million for corporations and $220,000 for individuals will apply.

Madam Speaker, it is prudent to do what we reasonably can to reduce carbon emissions.

But we don't believe in ostracising any particular fuel and we don't believe in harming economic growth.

Madam Speaker, climate change is a serious issue and we have strong policies to come into place so that we rest lightly on the planet.

The Government is repealing the Carbon Tax because there is a less complicated and less costly way to reduce greenhouse gas emissions—a way that will actually reduce emissions and won't damage the economy.

The Government will scrap the Carbon Tax and then proceed with its Direct Action Plan.

The centrepiece of the Direct Action Plan will be the Emissions Reduction Fund – a market-based mechanism for reducing carbon dioxide emissions; a Fund which provides a powerful and direct additional incentive for businesses to reduce their greenhouse gas emissions.

The $2.55 billion Fund will use positive incentives to reduce Australia's emissions and prioritise cost-effective, targeted means to reduce emissions.

It's an incentive-based approach which will support Australian businesses and households to lower their energy costs at the same time as reducing Australia's emissions.

It will see us plant more trees, get more carbon captured in soils, clean up power stations and use smarter technology.

We believe that by the time the 5 per cent reduction kicks in in 2020 we'll have an overall reduction in our emissions of some 22 per cent of 2000 levels off a business as usual model—serious action about a significant problem.

Madam Speaker, the carbon tax is a $9 billion hit on the economy this year alone.

It is a $9 billion hit on jobs, a $9 billion burden on investment and a $9 billion burden on Australia that we just don't need.

This bill gets rid of it.

This bill, Madam Speaker, is the Government's bill to reduce the Australian people's bills and so I commend this bill to the Senate.

TRUE-UP SHORTFALL LEVY (GENERAL) (CARBON TAX REPEAL) BILL 2013 [No.2]

Together, this bill, the True-up Shortfall Levy (Excise) (Carbon Tax Repeal) Bill 2013, and the Clean Energy Legislation (Carbon Tax Repeal) Bill 2013 ensure that final assistance allocations under the Jobs and Competitiveness Program are accurate so that businesses are not over- or under-allocated assistance in 2013-14.

This bill imposes a levy which recovers the value of over allocated free carbon units received under the Jobs and Competitiveness Program for the 2013-14 financial year.

For constitutional reasons, this bill imposes the levy to the extent that it is not a duty of customs or excise.

TRUE-UP SHORTFALL LEVY (EXCISE) (CARBON TAX REPEAL) BILL 2013[No.2]

Together, this bill, the True-up Shortfall Levy (General) (Carbon Tax Repeal) Bill 2013, and the Clean Energy Legislation (Carbon Tax Repeal) Bill 2013 will ensure that final assistance allocations under the Jobs and Competitiveness Program are accurate, so that businesses are not over- or under-allocated assistance in 2013-14.

For constitutional reasons, this bill imposes the levy to recover over allocations to the extent that it is a duty of excise.

CUSTOMS TARIFF AMENDMENT (CARBON TAX REPEAL) BILL 2013 [No.2]

The Customs Tariff Amendment (Carbon Tax Repeal) Bill 2013 amends the Customs Tariff Act 1995 to remove the elements of this act that were legislated by the former government to apply the carbon tax through the fuel tax and excise system.

Importantly, this will reduce the increase in excise-equivalent customs duty on aviation gasoline and aviation jet fuel that represents an equivalent to the carbon tax applied to Australian imports.

Currently, Qantas imposes a carbon price surcharge of between $1.93 and $7.25 per passenger on all domestic flights, depending on the distance travelled. Virgin Australia imposes similar surcharges.

The repeal of the carbon tax will reduce one of the major components of airline costs and enable airlines to pass on a significant saving to travellers.

EXCISE TARIFF AMENDMENT (CARBON TAX REPEAL) BILL 2013[No.2]

This bill, which amends the Excise Tariff Act 1921, reduces the increase in excise on aviation gasoline and aviation jet fuel that is applied when an equivalent carbon tax is applied to Australian manufactured fuels.

Around $200 million was raised in 2012-13 by applying the carbon charge to aviation fuel.

This bill will reduce one of the major components of airline costs, which can be passed on to travellers and consumers.

The bill also reduces the act's complexity by removing references and notes associated with the imposition of the carbon tax.

OZONE PROTECTION AND SYNTHETIC GREENHOUSE GAS (IMPORT LEVY) AMENDMENT (CARBON TAX REPEAL) BILL 2013 [No.2]

The Ozone Protection and Synthetic Greenhouse Gas (Import Levy) Amendment (Carbon Tax Repeal) Bill 2013 is one of two bills to repeal the equivalent carbon tax on synthetic greenhouse gases.

These bills are part of the broader legislative package to abolish the carbon tax. This bill amends the Ozone Protection and Synthetic Greenhouse Gas (Import Levy) Act 1995 so that importers of synthetic greenhouse gases and products containing those gases will not incur a liability to pay the equivalent carbon tax for synthetic greenhouse gas and equipment imported after 1 July 2014. This will reduce costs for businesses using these gases, including for refrigeration and air conditioning.

OZONE PROTECTION AND SYNTHETIC GREENHOUSE GAS (IMPORT LEVY) (TRANSITIONAL PROVISIONS) BILL 2013 [No.2]

The Ozone Protection and Synthetic Greenhouse Gas (Import Levy) (Transitional Provisions) Bill 2013 provides for an exemption from the equivalent carbon price for the import of bulk synthetic greenhouse gases between 1 April and 30 June 2014 if certain conditions are met.

OZONE PROTECTION AND SYNTHETIC GREENHOUSE GAS (MANUFACTURE LEVY) AMENDMENT(CARBON TAX REPEAL) BILL 2013 [No.2]

The Ozone Protection and Synthetic Greenhouse Gas (Manufacture Levy) Amendment (Carbon Tax Repeal) Bill 2013 is one of two bills to repeal the equivalent carbon tax on synthetic greenhouse gases. These bills are part of the broader legislative package to abolish the carbon tax.

This bill amends the Ozone Protection and Synthetic Greenhouse Gas (Manufacture Levy) Act 1995 so that manufacturers of synthetic greenhouse gases will not incur a liability to pay the equivalent carbon tax for synthetic greenhouse gas manufactured after 1 July 2014. This will reduce costs for businesses using these greenhouse gases, including for refrigeration and air conditioning.

CLEAN ENERGY (INCOME TAX RATES AND OTHER AMENDMENTS) BILL 2013 [No.2]

The Clean Energy (Income Tax Rates and Other Amendments) Bill 2013 is part of a package of bills to remove the carbon tax.

This bill amends elements of the Clean Energy (Income Tax Rates Amendments) Act 2011 to repeal the second round of personal income tax cuts due to start on 1 July 2015.

The government understands households will continue to face cost-of-living pressures.

That is why the government is keeping the current carbon tax related personal income tax thresholds and the fortnightly pension and benefit increases.

In its final budget handed down on 14 May 2013, the former government deferred a second round of personal income tax cuts and booked a $1.5 billion saving over the forward estimates.

But the former government never followed through by legislating this change.

This bill repeals legislated amendments to the Income Tax Rates Act 1986 so that the statutory personal income tax rates and thresholds do not change on 1 July 2015.

This bill also amends the Clean Energy (Tax Laws Amendments) Act 2011 to repeal related amendments to the low-income tax offset.

This bill also repeals legislated amendments to the Income Tax Assessment Act 1936 so that the related amendments to the low-income tax offset do not take effect on 1 July 2015.

Overall, the repeal of these amendments means that the tax-free threshold will remain at $18,200.

The second personal marginal tax rate will remain at 32.5 per cent. And the maximum value of the low-income tax offset will remain at $445.

This bill legislates the $1.5 billion saving that the former government announced during the 2013-14 budget but never legislated.

A first round of tax cuts to compensate for the introduction of the carbon tax has already been delivered. We will deliver further savings to Australian households of $550 next year with the removal of the carbon tax. In short this is our saving for the Australian people.