Mitch Fifield (Victoria, Liberal Party, Manager of Opposition Business in the Senate) Share this | Link to this | Hansard source

My question is to the Minister representing the Minister for Families, Housing, Community Services and Indigenous Affairs, Senator Arbib. Given the important role of Australia's 600 disability enterprises, which employ around 20,000 people, including many with an intellectual impairment, can the minister explain why the government is introducing a carbon tax which will increase the power bills of many of these enterprises by tens of thousands of dollars a year? Is the minister aware that none of these organisations will receive compensation under the government's carbon tax plan?

Mark Arbib (NSW, Australian Labor Party, Minister for Social Housing and Homelessness) Share this | Link to this | Hansard source

In relation to the specifics in regard to those disability enterprises, I am happy to check and come back to the chamber with more information. In regard to community organisations and charities, it is pretty clear that funding is being put forward by the Australian government to support those organisations and I have said that in this chamber numerous times. With the introduction of the carbon price, the Low Carbon Communities Program will fund grants for local community organisations to support them to retrofit or upgrade community-use buildings and facilities to reduce their energy usage. This will cut their energy costs and serve as demonstration projects to promote energy efficiency in the community. There will also be a dedicated funding stream under the Low Carbon Communities Program to provide payments to charities to offset the carbon costs they will face if they require usage of aviation fuels for maritime purposes. That will attract an effective carbon price under the fuel excise and tax credit scheme.

This funding will be provided on an ongoing basis. I have made this clear on a number of occasions. The funding of many charities and community organisations, I am happy to say, will be indexed. So, as costs rise, funding will be increased. The indexation will be changed annually after consideration of movements in the data that underpins the estimates of costs faced by these groups. This means cost impacts resulting from the introduction of the carbon price will be captured in this indexation and organisations will automatically receive increased funding over time. We believe in supporting charities and the not-for-profit sector and we welcome comments from those organisations. We understand organisations are keen to know what the carbon price will mean for them and what support they will be entitled to.

Mitch Fifield (Victoria, Liberal Party, Manager of Opposition Business in the Senate) Share this | Link to this | Hansard source

The minister addressed a whole range of organisations, except Australian disability enterprises, which I can confirm for him will receive will receive no direct compensation. I ask a supplementary question: can the minister explain how the government proposes that these organisations, many of which operate with tight margins, should bridge their budget gaps as a result of the carbon tax, a tax that will only make these organisations worse off?

Mark Arbib (NSW, Australian Labor Party, Minister for Social Housing and Homelessness) Share this | Link to this | Hansard source

I have gone through the support that will be provided to community organisations, not-for-profits and charities, but also there will be a great deal of assistance provided to Australian families and to pensioners. When the carbon price starts in July next year we will be providing assistance to nine out of 10 Australian households, assistance that is permanent and will increase over time. Almost six million households, or two out of three, will get assistance. This is funding that will be ongoing and in two out of three cases will meet or exceed the expected average price impact. Families on low incomes and pensioners will get the most assistance because we know that they have less room to move in their weekly budgets. The assistance has no strings attached, so if families can make some small changes around the house and reduce their energy consumption then they can keep the money. (Time expired)

Mitch Fifield (Victoria, Liberal Party, Manager of Opposition Business in the Senate) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Can the minister guarantee that no Australian disability enterprise will close as a result of Labor's carbon tax?

Mark Arbib (NSW, Australian Labor Party, Minister for Social Housing and Homelessness) Share this | Link to this | Hansard source

I have said in relation to disability enterprises that I am happy to seek a brief from the Minister for Families, Housing, Community Services and Indigenous Affairs, Jenny Macklin, and provide that information to the Senate. I have gone through the assistance that is provided to community organisations, not-for-profit organisations and also families. In terms of the disability area, this government is proud of the work it has done. No government has provided more funding or resources to disability organisations. No government has provided more. In fact, in terms of a national disability insurance scheme, this is a government that is taking action and Senator Fifield well knows that.

Chris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | Link to this | Hansard source

Mr President, I ask that further questions be placed on the Notice Paper.