Senate debates
Wednesday, 9 July 2014
Bills
Clean Energy Legislation (Carbon Tax Repeal) Bill 2013 [No. 2], True-up Shortfall Levy (General) (Carbon Tax Repeal) Bill 2013 [No. 2], True-up Shortfall Levy (Excise) (Carbon Tax Repeal) Bill 2013 [No. 2], Customs Tariff Amendment (Carbon Tax Repeal) Bill 2013 [No. 2], Excise Tariff Amendment (Carbon Tax Repeal) Bill 2013 [No. 2], Ozone Protection and Synthetic Greenhouse Gas (Import Levy) Amendment (Carbon Tax Repeal) Bill 2013 [No. 2], Ozone Protection and Synthetic Greenhouse Gas (Import Levy) (Transitional Provisions) Bill 2013 [No. 2], Ozone Protection and Synthetic Greenhouse Gas (Manufacture Levy) Amendment (Carbon Tax Repeal) Bill 2013 [No. 2]; In Committee
12:34 pm
Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Hansard source
I thank Senator Xenophon for his contribution and this question. We have never said that the carbon tax is the only factor. We have always acknowledged that there are other factors at play. The purpose of this legislation is to reduce electricity costs for families and businesses by scrapping the carbon tax because the carbon tax has been a significant driver of the increases in the cost of electricity, even if it is not the only factor. In repealing the carbon tax, household electricity bills will be around $200 lower on average in 2014-15 than they would otherwise have been. In November 2012, the independent electricity rule maker, the Australian Energy Market Commission, put new rules in place to considerably improve the strength and capacity of the Australian Energy Regulator to determine the network price increases. The final rules were made following more than a year of consultation.
The new rules better equip the Australian Energy Regulator to ensure that consumers do not pay more than necessary for reliable supplies of electricity and gas. These new rules are, I am sure Senator Xenophon would be pleased to hear, already beginning to put downward pressure on prices. The transitional electricity distribution network decisions by the Australian Energy Regulator for 2014-15 provide a reduction in average annual charges for New South Wales and ACT residential customers of $38 and $19 respectively. That is why in our judgement it would have been premature to announce a further review of the rules at this time and that is the reason the government chose not to support the second reading amendment moved by Senator Xenophon.
Do we acknowledge that there are other factors at play when it comes to the cost of electricity? Of course. Do we consider that the carbon tax is a significant, self-inflicted, unnecessary and counterproductive factor in pushing up the cost of electricity? Yes, we do, and that is why we are moving to remove it and that is why we are commending the Senate to support the government's efforts to repeal the carbon tax.
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