9th Jul 2014, 11:25 AM – Senate Clean Energy Legislation (Carbon Tax Repeal) Bill 2013 [No. 2] and related bills - Second Reading - In favour of an emissions trading scheme

This division relates to the Policy For a carbon price.

The majority voted against a motion moved by Senator Lisa Singh, which means that it was unsuccessful.

The motion was an amendment to the original motion "That these bills be now read a second time" and was the following:

At the end of the motion, add:

but the Senate notes

(a) the scientific and expert consensus regarding Climate Change;

(b) that in its first year, the Clean Energy Future Package:

(i) drove a 7% reduction in carbon pollution from electricity generation in the National Electricity Market;

(ii) saw renewable energy increase its share of the National Electricity Market by 25%;

(iii) delivered the household assistance package to compensate families and individuals for any impact of carbon pricing; and

(iv) supported continued economic growth, with over 160,000 jobs created in 2012-13 across the economy, including clean energy jobs;

(c) that since the 2013 election Australia's international reputation on climate change action has been damaged by becoming the first nation to move backwards on climate change while the rest of the world, including China and the US, is moving forward; and

(d) the need for the Government to pass an Emissions Trading Scheme to place a cap on carbon pollution and drive a clean energy future for Australia.

Background to the bills

The Clean Energy Legislation (Carbon Tax Repeal) Bill 2013 (No. 2) and related bills were introduced to remove the carbon pricing mechanism, which was introduced by the Australian Labor Party while in government. The Coalition described the mechanism as a “carbon tax” and removing it was a key policy platform during the 2013 election.(You can read more about the Coalition's policy to remove the carbon price here. )

The carbon pricing mechanism commenced on 1 July 2012.(For more information on the carbon pricing mechanism and how it works, please see the Clean Energy Regulator’s website. ) It is an emissions trading scheme that puts a price on carbon emissions. It applies to “liable entities” (a group that includes companies that emit a high level of greenhouse gases). Initially the price of carbon is fixed by the mechanism but from 1 July 2015 the price will be set by the market, though the Labor Government did announce plans to bring this forward to 1 July 2014 just before they were defeated by the Coalition in the 2013 election.

This is the second time that this package of bills has been introduced, after they were rejected in the Senate during the third reading stage the first time round.(See that division here.)

The other related bills that were introduced along with the Clean Energy Legislation (Carbon Tax Repeal) Bill 2013 (No. 2) are:

• Ozone Protection and Synthetic Greenhouse Gas (Import Levy) Amendment (Carbon Tax Repeal) Bill 2013 (No. 2);
• Ozone Protection and Synthetic Greenhouse Gas (Manufacture Levy) Amendment (Carbon Tax Repeal) Bill 2013 (No. 2);
• True-up Shortfall Levy (General) (Carbon Tax Repeal) Bill 2013 (No. 2);
• True-up Shortfall Levy (Excise) (Carbon Tax Repeal) Bill 2013 (No. 2);
• Ozone Protection and Synthetic Greenhouse Gas (Import Levy) (Transitional Provisions) Bill 2013 (No. 2);
• Customs Tariff Amendment (Carbon Tax Repeal) Bill 2013 (No. 2);
• Excise Tariff Amendment (Carbon Tax Repeal) Bill 2013 (No. 2);
• Clean Energy (Income Tax Rates and Other Amendments) Bill 2013 (No. 2);
• Climate Change Authority (Abolition) Bill 2013 (No. 2).