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Tuesday, 11 October 2011
Page: 11398

Carbon Pricing

Mr CROOK (O'Connor) (14:30): My question is for the Minister for Climate Change and Energy Efficiency. I refer to the government's changes to fuel tax credits as a part of the carbon tax and I ask: is the government aware that tens of thousands of businesses in Australia, many of which are small businesses, will be paying the effective carbon price? Does the government admit that this effective carbon price on fuel is not just a tax on big polluters?

Mr COMBET (Charlton—Minister for Climate Change and Energy Efficiency) (14:30): I thank the member for O'Connor for his question. Of course, the House will consider further later today the government's clean energy legislative package. It is an extremely important reform for this country. He has referred to the carbon pricing mechanism in his question. Around 500 of the largest emitters of greenhouse gases will carry a liability under the carbon price mechanism. There are of course, in relation to some forms of off-road fuel usage, arrangements that the legislation will put in place to apply an effective carbon price to them.

I am aware of the fact that the member for O'Connor has put forward an amendment this morning that relates to this issue. I would like to assure him that the government is looking very carefully at it. We understand the concerns that he is raising and recognise that he is representing the concerns that would have been raised with him by people within his electorate. I am working in my office and seeking some advice about the implications of the amendment that has been put forward.

I note in this context that it is important to always bear in mind that, in relation to the effective carbon pricing arrangements that the government is proposing to apply to various areas of off-road fuel usage, there will be no effective carbon price applied in relation to light commercial vehicles. So Australian motorists will not be facing an effective carbon price in relation to their fuel usage. We will have a look at the proposed amendment and have some further discussions with the member for O'Connor about those particular issues.

To conclude, it is also important to note that in rural and regional Australia the exemptions in relation to off-road usage that apply to the agriculture, forestry and fishing sectors are also very important considerations. We will have a look at the issues that the member has raised and have further discussions with him in relation to them.