John Williams (NSW, National Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Prime Minister, Senator Conroy. I refer the minister to the confirmation given by the Prime Minister last week that, if Labor is re-elected, the carbon tax will be expanded to include coverage of heavy on-road vehicles—truckies—from 1 July next year when the carbon tax will increase to $25.40. Will the minister inform the Senate exactly how much extra truck operators will be paying per litre of diesel in 2014-15 under Labor thanks to the continued expansion of the carbon tax?

Stephen Conroy (Victoria, Australian Labor Party, Minister for Broadband, Communications and the Digital Economy) Share this | Link to this | Hansard source

I thank Senator Williams for his question. All fuel for passenger motor vehicles, including petrol, diesel and LPG, and fuel for light on-road commercial vehicles is not subject to a carbon price. Households and most small businesses already pay fuel excise on their transport fuel and do not face a further carbon price. That is because the government knows that fuel costs are a major expense for family budgets. The government has carefully considered the treatment of fuel to balance the needs of households and most small businesses, who already pay the highest rate of excise, and those who pay little or no excise. The combustion of fuel creates carbon pollution, and putting an effective price on that pollution through the excise system for some fuel users plays an important role in creating an incentive to switch to lower emission fuels, use zero emission biofuels and use fuel more efficiently. Biofuels will not be subject to an effective carbon price. There is no adjustment of fuel tax credits for heavy on-road vehicles for the first two years. This has given trucking businesses time to get their systems and contractual arrangements in place. The government's comprehensive Household Assistance Package takes full account of the extent to which these modest increased costs flow through to household budgets. It will have a very modest impact on transport costs, adding around 29c to the cost of moving a tonne of goods 100 kilometres. The transport industry already deals with the frequent movements in international fuel prices, which regularly have a much greater impact than are proposed for the effective carbon price. (Time expired)

John Williams (NSW, National Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Minister, which, if any, trucks will be exempt from paying more for their diesel fuel under the new carbon tax diesel cost plan by your government?

Stephen Conroy (Victoria, Australian Labor Party, Minister for Broadband, Communications and the Digital Economy) Share this | Link to this | Hansard source

Transport is not directly subject to a carbon price under the government's carbon pricing mechanism. They do not need to buy and surrender permits. However, some businesses get fuel tax credits, which means they pay no excise or just pay a road user charge. Fuel tax credits have been reduced for some businesses, such as mining businesses, who use fuel off-road so that they face an effective carbon price. Heavy on-road vehicles will be exempted for the first two years, as I have said, but the government does intend to bring them into the system from 2014-15.

John Williams (NSW, National Party) Share this | Link to this | Hansard source

Mr President, I raise a point of order on relevance. Which if any trucks will be exempted from the carbon tax fuel levy? It is a simple question. Are there any, and which ones?

John Hogg (President) Share this | Link to this | Hansard source

I believe the minister is answering the question. The minister still has 15 seconds remaining.

Stephen Conroy (Victoria, Australian Labor Party, Minister for Broadband, Communications and the Digital Economy) Share this | Link to this | Hansard source

Fuel tax credit entitlements will not change for agriculture, forestry and fisheries, meaning they do not face an effective carbon price. As aviation does not receive fuel tax credits, the government increased domestic— (Time expired)

John Williams (NSW, National Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Are industry estimates of the tax being more than a $500 million slug on Australian truck operators accurate, and are these increases supported by key stakeholders such as your beloved Transport Workers Union, who have described the carbon tax as a death tax?

Stephen Conroy (Victoria, Australian Labor Party, Minister for Broadband, Communications and the Digital Economy) Share this | Link to this | Hansard source

Those opposite will continue to spread any disinformation that they can. Already today we have seen claims about job losses and we have seen claims about companies being closed, all ignoring the fundamental facts of the economy: the growth in the economy, the growth in jobs, the growth in economic activity and the growth of our economy overall. So those opposite have no real interest except in trying to mislead the Australian public consistently. They want no-one to examine their alternative policy. They want no-one to examine what Mr Abbott has consistently said on this issue because Mr Abbott has changed his position time after time. (Time expired)