Simon Birmingham (SA, Liberal Party, Assistant Minister for Education and Training) Share this | Hansard source

I thank Senator Dio Wang for his question and for some advance indication of the nature of the question. I do acknowledge that Senator Wang has made numerous representations on behalf of remote communities, including in some of the recent Senate debates in relation to the renewable energy target, where the government of course made amendments that provided for the sustainability of the RET and ensured that it will generate some 23½ per cent of renewable energy for Australia by 2020. As Senator Wang would know, the RET applies broadly to electricity supplied over the major electricity networks in Australia as well as self-generation of electricity above a certain threshold. This ensures that the costs of the scheme are shared and that perverse incentives are not created for businesses in terms of where they generate their electricity.

Exemptions from the RET have historically been restricted to businesses conducting emissions-intensive trade-exposed activities, which are exemptions that were further strengthened in the recent legislation the Senate passed, and for businesses self-generating electricity in specific circumstances. Entities that generate and use their own electricity can seek exemptions from RET liability but under strict eligibility conditions to target genuine self-generation. Redrawing the boundaries for the self-generator exemption is a matter that requires careful consideration, as we discussed in the recent Senate debate on this matter, because there is a real potential for unintended consequences in the way that the RET operates.

That said, the government is aware of the specific issues and concerns that Senator Wang has alluded to and has followed up on the issue since he raised these matters. It has been speaking with industry. I am advised that Minister Hunt is working to seek resolution to the specific circumstances that the senator raises.