Download Fragment

Tuesday, 16 August 2011
Page: 4478

Senator CAROL BROWN (Tasmania—Deputy Government Whip in the Senate) (15:41): In question time today, Senator Wong gave excellent responses to the questions asked of her and said in one of her responses, 'To be a first-rate economy you need to be a clean energy economy.' Australia's carbon pollution is continuing to grow at a rapid rate. Without action it is expected to grow by almost two per cent a year to 2020. That is why the Australian government has a comprehensive plan to build a clean energy future. Our plan includes introducing the carbon price, promoting innovation and investment in renewable energy, encouraging energy efficiency and creating opportunities in the land sector to cut pollution.

Climate scientists have been telling us for years that the world is warming and that carbon pollution poses a threat to our environment and our economy. The rest of the world is acting and we cannot be left behind. Eighty-nine countries, which represent 80 per cent of global emissions and 90 per cent of the world's economy, have already pledged to take action on climate change. Australia generates more carbon pollution per capita than any other developed country, including the United States. We also produce significantly more pollution per person than India and China. Our carbon pollution is increasing at a rapid rate and without action it will continue to grow. We cannot wait any longer. We must act now and the Gillard Labor government is taking action to reduce greenhouse gas emissions.

A price on carbon is not a tax on ordinary Australians. It is the big polluters who will pay under the government's carbon price plan—unlike the direct action plan of those opposite who insist on making taxpayers pay. Under their plan, families will be worse off with each Australian household paying around $1,300 more in taxes. In the government's plans, Australia's 500 biggest companies will be charged for the pollution they produce. This will help drive investment in clean energy technologies. It will be good for our children and our grandchildren. All of the money raised from the carbon price will be used to support households and jobs and to invest in clean energy and climate change programs. To assist households with price impacts, the government is introducing a comprehensive assistance package. This will comprise two rounds of tax cuts and increases in pensions, allowances and benefits. The tax cuts and increased payments will be targeted at those who need them most. This will mean Labor will ensure that pensioners, low- and middle-income earners and families are assisted.

Under our assistance package, nine out of 10 households will receive assistance through a combination of tax cuts and increased payments. Almost six million Australian households will receive tax cuts or increases in payments that fully cover the average price impacts of the carbon price. Labor will also provide a 20 per cent buffer for over four million Australian households. This means that those households will receive assistance that covers 120 per cent of the average price impact of the carbon price. Age, disability support and carer pensioners will receive $338 a year for singles on the full rate and $510 a year for couples combined on the full rate.

We know that self-funded retirees will also require support when the carbon price is implemented, so we will be providing the same assistance to eligible self-funded retirees that we are providing to age and disability pensioners. We are also tripling the tax-free threshold to over $18,000, which means that over one million Australians will no longer need to lodge a tax return.

In my home state of Tasmania the assistance package will ensure that 102,300 pensioners receive assistance through their pension payments to offset any carbon price increases. More than 45,600 families in Tasmania will also receive household assistance through their family assistance payment. On top of this, taxpayers in Tasmania with an annual income under $80,000 will get a tax cut, with most receiving at least $300 per year. This assistance is in stark contrast to the plan offered by the opposition. (Time expired)