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The reintroduction of bills to repeal the carbon and mining taxes



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The reintroduction of bills to repeal the carbon and mining

taxes

Posted 25/06/2014 by Tarek Dale

On 23 June 2014, the Government re-introduced a package of Bills to repeal the ‘carbon

tax’. A separate Bill was also introduced to repeal the minerals resource rent tax (MRRT). On

24 June 2014, the House agreed to several debate management motions that will have the

effect of expediting the passage of the Bills through the House so that they are able to be

considered by the Senate when it meets on 7 July 2014.

The re-introduced Bills are identical to those rejected by the Senate in March 2014. Under

section 57 of the Constitution, passage of the same bill more than three months after it is

rejected by the Senate is one step in a series of requirements for a double dissolution

trigger (a 2010 Library paper on double dissolutions provides more context).

Carbon tax repeal package of Bills

The key objective of the carbon tax package of Bills is to repeal the legislative framework

that imposes a liability on certain businesses for greenhouse gas emissions associated with

their production activities from 1 July 2014.

There are 11 separate Bills that are part of the carbon tax package. These 11 Bills are:

• the Clean Energy Legislation (Carbon Tax Repeal) Bill 2013 [No. 2]

• the Ozone Protection and Synthetic Greenhouse Gas (Import Levy) Amendment (Carbon

Tax Repeal) Bill 2013 [No. 2]

• the Ozone Protection and Synthetic Greenhouse Gas (Manufacture Levy) Amendment

(Carbon Tax Repeal) Bill 2013 [No. 2]

• the Ozone Protection and Synthetic Greenhouse Gas (Import Levy) (Transitional

Provisions) Bill 2013 [No. 2]

• the True-up Shortfall Levy (General) (Carbon Tax Repeal) Bill 2013 [No. 2]

• the True-up Shortfall Levy (Excise) (Carbon Tax Repeal) Bill 2013 [No. 2]

• the Climate Change Authority (Abolition) Bill 2013 [No. 2]

• the Customs Tariff Amendment (Carbon Tax Repeal) Bill 2013 [No. 2]

• the Excise Tariff Amendment (Carbon Tax Repeal) Bill 2013 [No. 2]

• the Clean Energy (Income Tax Rates and Other Amendments) Bill 2013 [No. 2], and

• the Clean Energy Finance Corporation (Abolition) Bill 2014.

With the exception of the Clean Energy Finance Corporation (Abolition) Bill 2014—which has

been presented in a similar form on two separate occasions but negatived in the Senate—the

reintroduced Bills are identical to the carbon tax repeal package of Bills that were negatived

in the Senate on 20 March 2014.

New Bills digests are being prepared to incorporate additional relevant information. In the

meantime, several Bills digests prepared by the Parliamentary Library on the previous carbon

tax repeal package of Bills provide a guide to the policy background and the provisions of

the Bills:

• Clean Energy Legislation (Carbon Tax Repeal) Bill 2013 [and] True-up Shortfall Levy

(General) (Carbon Tax Repeal) Bill 2013 [and] True-up Shortfall Levy (Excise) (Carbon Tax

Repeal) Bill 2013, Bills digest, 16, 2013-14.

• Customs Tariff Amendment (Carbon Tax Repeal) Bill 2013 [and] Excise Tariff Amendment

(Carbon Tax Repeal) Bill 2013 [and] Ozone Protection and Synthetic Greenhouse Gas

(Import Levy) Amendment (Carbon Tax Repeal) Bill 2013 [and] Ozone Protection and

Synthetic Greenhouse Gas (Import Levy) (Transitional Provisions) Bill 2013 [and] Ozone

Protection and Synthetic Greenhouse Gas (Manufacture Levy) Amendment (Carbon Tax

Repeal) Bill 2013, Bills digest, 17, 2013-14.

• Clean Energy (Income Tax Rates and Other Amendments) Bill 2013, Bills digest, 18,

2013-14.

• Climate Change Authority (Abolition) Bill 2013, Bills digest, 25, 2013-14.

• Clean Energy Finance Corporation (Abolition) Bill 2013 [No. 2], Bills digest, 54, 2013-14.

Minerals Resource Rent Tax repeal Bill

The key objective of the Minerals Resource Rent Tax Repeal and Other Measures Bill 2013

[No. 2] is to repeal the MRRT. It also proposes to abolish or amend expenditure on a range

of programs that have been linked to the MRRT. The previous MRRT repeal Bill, the Minerals

Resource Rent Tax Repeal and Other Measures Bill 2013, was negatived in the Senate on 25

March 2014.

The Minister's second reading speech noted that the Government plans to introduce an

amendment to its Bill, in order to adjust the timing of increases to the Superannuation

Guarantee Charge percentage (Schedule 6) as announced in the 2014-15 Budget.

The changes to the Schoolkids Bonus (Schedule 8) takes effect from the date of Royal

Assent; because this will now take place at a later date, the removal of the Schoolkids Bonus

is effectively delayed. The dates for other policy changes are the same as those in the

original Bill.

The Government has not announced any changes in relation to the Income Support Bonus

and its provision to the children of veterans, although Mr Palmer has previously stated that

this is a condition of Palmer United Party support.

A new Bills digest is being prepared to incorporate additional relevant information. In the

meantime, the Bills digest for the previous MRRT Bill provides a guide to the policy and

provisions of the Bill.