The Government is continuing its domestic policy reform agenda. In November 2008, it pursued ambitious reforms costing $15.2 billion through the Council of Australian Governments to reshape the way key services such as health, education and housing are funded and delivered. The Government has also taken further strides to promote social inclusion, and respond to Indigenous disadvantage.
The Government is committed to tackling climate change and this Budget will make significant investments, including the $4.5 billion Clean Energy Initiative, to assist the economy transition to a low pollution future. The Government is taking a balanced, yet ambitious, approach to introducing the Carbon Pollution Reduction Scheme. It is also stepping up its diplomatic efforts to influence Australia's strategic environment.
Tackling climate change
Over nine years, the $4.5 billion Clean Energy Initiative will encourage innovation in clean energy and low‑emissions technology. This, together with the $3.9 billion Energy Efficient Homes program and the ten year $1.3 billion Green Car Innovation Fund, will help prepare the economy for the introduction of a carbon price and the transition to a low‑pollution future.
Carbon Pollution Reduction Scheme (CPRS)
To help manage the impacts of the global recession, the Government will delay the start of the CPRS to 1 July 2011 and introduce a fixed carbon price of $10 per tonne for one year when the scheme begins.
The Government is committed to reducing Australia's carbon pollution by 25 per cent below 2000 levels by 2020 if an ambitious 450 parts per million global agreement is reached.
The Government will introduce the CPRS legislation this year. Early passage of the legislation will provide business certainty for future investment decisions. If we continue to lock in high‑emissions investments, the transformational task ahead will be greater and more costly.
The Government will also provide further support to emissions‑intensive trade‑exposed industries; top up to the $2.75 billion Climate Change Action Fund; and establish the Australian Carbon Trust.
Securing Australia's place in the world
In the midst of the global recession, it is vital that Australia step up its bilateral and multilateral efforts to enhance global and regional stability and prosperity.
Australia has been increasingly active in forums such as the G‑20, APEC and the East Asia Summit.
This Budget provides $460 million over four years for key foreign policy initiatives that are vital to our economic, strategic and national security interests.
Within this total, the Government will provide $110 million over four years to boost key economic and strategic relationships with India, Pakistan, Africa, Latin America and the Pacific.
Pushing ahead on the climate change agenda (over five years from 2008‑09)