Clean energy future - draft legislation released

On 28 July 2011, the Deputy Prime Minister and Treasurer, the Hon Wayne Swan MP, and the Minister for Climate Change and Energy Efficiency, The Hon Greg Combet AM MP, issued a joint media release entitled Clean energy future draft legislation released.

The government released exposure drafts of the key bills in the government’s clean energy legislative package.

The Clean Energy Legislative Package (Package) includes four main bills: 

• The Clean Energy Bill 2011 (which sets up the carbon price mechanism)
• The Clean Energy Regulator Bill 2011 (which establishes a regulatory body to administer the mechanism) 
• The Climate Change Authority Bill 2011 (which establishes a new Authority to advise the government on the future design of the carbon price mechanism) and 
• The Clean Energy (Consequential Amendments) Bill 2011

The Package: 

• implements the carbon pricing mechanism for Australia to reduce carbon pollution and move to a clean energy future 
• sets out how the carbon price will be run, and what businesses will have to do 
• links the carbon price to the Carbon Farming Initiative and to credible schemes overseas 
• provides for assistance to emissions intensive and trade exposed industries through the Jobs and competitiveness Program and to electricity generators to ensure energy security 
• excludes agriculture from the mechanism 
• sets up a Clean Energy Regulator to run the mechanism 
• sets up an independent Climate Change Authority to advise on key aspects of the carbon price mechanism and the Government’s climate change mitigation initiatives 
• applies an effective carbon price to transport fuels (except for fuel used by households and in light commercial vehicles) through excise and customs tariffs 
• provides a refundable tax offset for conservation tillage equipment; and 
• gives assistance to Australian households that need it most, including pensioners and low and middle income earners.

The Bill incorporating these household assistance measures will be part of the package of clean energy bills that will be introduced into Parliament later this year.

The government will consider submissions on the drafting of the Bills before they are introduced into the Parliament.

Members wishing to send comments on the draft Bills can send them to Tax Group by 8 August 2011.

The Institute’s Manager of Sustainability and Regional Australia, Geraldine Magarey, has commented further in her blog entitled Pricing carbon: carrot and stick? 

Article last updated 28 September 2011