Gary Humphries (ACT, Liberal Party, Shadow Parliamentary Secretary for Defence Materiel) Share this | Link to this | Hansard source

My question is to the Minister representing the Minister for Climate Change and Energy Efficiency, Senator Wong. Is the minister aware of the announcement of the ACT's independent competition and pricing regulator that electricity prices in the ACT will rise by 17.74 per cent or around $273 a year for an average Canberra household, with the majority of the price rise a direct result of the Labor government's carbon tax?

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

I am aware that analyses of price increases across Australia have been released by various authorities. I do not have the full detail of the ACT's one. I say again to the senator that the government has included in its assessment of household assistance price increases which are broadly comparable—and in some cases the reality has been smaller price increases—with what we are seeing. In other words, we have assessed correctly the price impact of a carbon price. We are making sure that we deliver assistance to Australian households. That assistance comes in the form of a tripling of the tax-free threshold, which is a tax cut for everybody earning under $80,000 a year. It is a particularly good reform for second income earners, because it ensures that they keep more of every dollar that they earn. That means that it has the added benefit of enhancing participation, a reform that was overdue and a reform that has been delivered by a Labor government in the context of the clean energy package and the tax reform associated with that package.

ACT pensioners and recipients of the disability support pension and recipients of other allowances will receive assistance that the government has announced. Pensioners get $338 per annum for singles and $510 per annum for couples combined. There are increases to the family tax benefit on a per child basis and to family tax benefit B, as well as assistance to self-funded retirees in receipt of the Commonwealth seniors healthcare card.

Gary Humphries (ACT, Liberal Party, Shadow Parliamentary Secretary for Defence Materiel) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Thank you, Minister. Are all Canberra families and households being compensated for the average cost-of-living rise of more than $640, according to an ACT government budget cost-of-living statement, with $460 of that attributed to the impacts of Labor's carbon tax? If not, what proportion or number will be worse off because of Labor's carbon tax?

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

The government has been completely upfront from the day that this was announced that assistance will focus on low- and middle-income Australia. I assume that Senator Humphries is not suggesting that he should get assistance. I assume that he would concede—because on some issues he is reasonable—that it is sensible for the government to ensure that assistance is targeted to those who need it most. That is why, while nine out of 10 households will receive some assistance, six out of 10 will get tax cuts or increased payments that cover the entire average cost impact. About four million Australian households will get an extra buffer of assistance over and above the cost impact. Compare that with the policy that the senator supports: $1,300 more tax paid by every Australian household every year. That is what your policy costs.

Gary Humphries (ACT, Liberal Party, Shadow Parliamentary Secretary for Defence Materiel) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Is the minister aware that the ACT Labor government has estimated that 60 per cent of Canberra households will be undercompensated for the carbon tax and 22 per cent will be totally uncompensated? With thousands of households facing electricity price rises of more than 17 per cent and a $640 increase in their cost of living, when will Ms Gillard admit that she went to the last election with the promise that there would be no carbon tax under a government that she led and that she has not told the truth to the Australian people?

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

We have provided assistance on the basis of income levels, the eligibility for particular Commonwealth entitlements such as family tax benefit, the disability support pension and pensions, and, obviously, the tax-free threshold. We have unashamedly done that because we believe it is important that when introducing a policy such as this it is necessary to fund and to assist as a priority low- and middle-income Australia. If Senator Humphries cares so much about the people who elect him, then I wonder why it is he cannot stop the shadow Treasurer constantly boasting about the number of public servants he will sack. That is all that Joe Hockey wants to talk about—I apologise, Mr Hockey. He is not prepared to talk about any other savings; he only wants to talk about your constituents. You remain very silent, Senator. (Time expired)