Investing in Australia's Future (Continued)
Avoiding the economic costs of climate change
A lower carbon price
The Government will bring forward the start date of emissions trading by one year to 1 July 2014. Based on current forecasts, this will result in a lower carbon price of around $6 in 2014‑15, compared to $25.40 under the original fixed price arrangements, due to the link with the European Union Emissions Trading Scheme. It is estimated that this will reduce the growth in overall consumer prices by around ½ of a percentage point through the year to June 2015.
A lower carbon price of around $6 will result in reduced costs to households and businesses through lower electricity, gas and other prices. It would be expected to reduce average household expenditure by around $3 a week, or over $150 in a year, on electricity bills, and around $1.10 per week, or $57 over the year, on gas bills. In total, Australian households will see their costs fall by around $380 next financial year, on average.
Businesses and the economy will also benefit from a lower carbon price, while still allowing Australia to transform the economy away from carbon‑intensive energy and meet internationally agreed emission reduction targets. This is because under emissions trading, net carbon pollution is capped. The annual pollution cap will continue to be set in light of the advice of the independent Climate Change Authority.
An internationally‑linked emission trading scheme means Australia will be part of an international solution to the global problem of climate change. Australian businesses will be able to take advantage of low cost international abatement and Australia will share the same carbon price as some of our most important trading partners.
Murray‑Darling Basin Plan
The Government is committed to a better approach to balancing the water needs of communities, farmers and the environment.
Since 2007, the Australian Government has delivered a plan to restore the Murray‑Darling Basin's rivers and wetlands while supporting strong regional communities and sustainable food production.
To support the implementation of the Murray‑Darling Basin Plan, the Government provided $3.5 billion in the 2013‑14 Budget to improve the environmental outcomes of the Basin Plan, improve the efficiency of the Commonwealth's water holdings, and support further research and community engagement in the Basin.
The Government is also investing in a South Australian River Murray Sustainability Program, which will further South Australia's contribution to a healthy working Murray‑Darling Basin through investments in water efficiency and improvements in the productivity of the South Australian River Murray irrigation industry.
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