Appendix A: Revenue Measures (Continued)
Climate Change and Energy Efficiency
Clean Energy Future — Putting a Price on Pollution — revenue from sale of carbon units
| 2010‑11 | 2011‑12 | 2012‑13 | 2013‑14 | 2014-15 | |
|---|---|---|---|---|---|
| Clean Energy Regulator | - | - | 7,690.0 | 8,610.0 | 9,200.0 |
| Australian Taxation Office | - | - | - | - | - |
| Total - Revenue | - | - | 7,690.0 | 8,610.0 | 9,200.0 |
| Related expense ($m) | |||||
| Australian Taxation Office | - | 1.1 | 1.6 | 2.5 | 2.3 |
| Department of the Treasury | - | - | - | - | - |
| Total - Expense | - | 1.1 | 1.6 | 2.5 | 2.3 |
The Government will place an explicit price on greenhouse gas emissions through the carbon pricing mechanism. The Government will raise an estimated $25.5 billion in revenue over the forward estimates period from the sale of carbon units which will be used to help households, industry, community organisations, workers and regions adjust to the carbon price. In underlying cash terms, the estimated increase in receipts is $17.8 billion over the forward estimates period. The difference between the cash and accrual numbers is largely due to the allocation of free carbon units under the Jobs and Competitiveness Program and the Energy Security Fund.
In general, entities with 25,000 tonnes or more of carbon dioxide equivalent emissions each year will be liable under the scheme. A liability will also apply to natural gas suppliers for emissions embodied in certain natural gas supplies. The carbon pricing mechanism will have broad coverage of emission sources from commencement, encompassing: stationary energy; industrial processes; fugitive emissions (other than from decommissioned coal mines) and emissions from non‑legacy waste.
Liable entities will surrender a carbon unit for every tonne of greenhouse gas they emit. During the first three years of the scheme, carbon units will be sold by the government at a fixed price of $23.00 per tonne in 2012‑13, $24.15 in 2013‑14 and $25.40 in 2014‑15.
The scheme will transition to a flexible price from 2015‑16 and be linked to the international market. Under the flexible price an overall limit (or pollution cap) will be placed on annual greenhouse gas emissions from all covered sources of pollution.
The Government will make supplies of carbon units and other eligible emissions units GST‑free, subject to the agreement of all the States and Territories. This will have no revenue impact and no impact on GST payments to the States and Territories over the forward estimates period.
There will be an expense of $7.4 million over the forward estimates period for the Australian Taxation Office to administer the changes to the income tax law for the treatment of all carbon units and other emissions units that are registered on the Australian National Register of Emissions Units.
This measure delivers on the Government's plan for a clean energy future.
Further information can be found in the joint press release of 10 July 2011 issued by the Prime Minister, the Deputy Prime Minister and Treasurer and the Minister for Climate Change and Energy Efficiency.
The estimate for this measure varies from those published in the Explanatory Memorandum for the clean energy legislation as a result of updated data and methodological improvements relating to liquid fuels.
Clean Energy Future — Putting a Price on Pollution — Voluntary Action Pledge Fund and GreenPower purchases
| 2010‑11 | 2011‑12 | 2012‑13 | 2013‑14 | 2014-15 | |
|---|---|---|---|---|---|
| Clean Energy Regulator | - | - | - | - | - |
| Related expense ($m) | |||||
| Department of Climate Change and Energy Efficiency |
- | 0.9 | 0.7 | 0.5 | 0.4 |
The Government will recognise the purchase of accredited GreenPower products by households and businesses from the commencement of the carbon pricing mechanism as voluntary action. This will help drive an increased supply of renewable energy and assist in the transition to cleaner energy sources.
To ensure voluntary action will make a net contribution to Australia's emissions reduction activities, the Government will take it into account when setting scheme caps. In the fixed price period of the carbon pricing mechanism, the Government will measure GreenPower purchases on an annual basis and take these into account when setting the initial pollution caps. From 2015‑16 the Government will measure GreenPower purchases on an annual basis and directly take these into account when setting the caps five years into the future.
The Government will also provide $2.4 million over four years to Low Carbon Australia Limited for the establishment of a Pledge Fund from the commencement of the carbon pricing mechanism to help individuals access the carbon market and voluntarily cancel emissions units including Australian carbon permits, Kyoto compliant and non‑Kyoto compliant Australian carbon credit units, and eligible international units. Contributions to the Pledge Fund will be tax deductible, following the completion of administrative arrangements necessary for the entry of the Fund onto the Register of Environmental Organisations.
Further information can be found in the Government's plan for a clean energy future released on 10 July 2011.
If www.budget.gov.au responds slowly or you are having trouble downloading a document, try one of the Budget Website Mirrors
Note: Where possible, Budget documents are available in HTML and for downloading in Portable Document Format(PDF). If you require further information on any of the tables or charts on this website, please contact The Treasury.
