Home > Mid-Year Economic and Fiscal Outlook > Appendix A: Policy decisions taken since the 2013-14 Budget > Expense Measures - Environment

Appendix A: Policy decisions taken since the 2013‑14 Budget (Continued)

Expense Measures (Continued)

Environment

Biodiversity Fund — reduced funding

Expense ($m)
	2012‑13	2013‑14	2014‑15	2015‑16	2016‑17
Department of the Environment	‑	‑0.2	‑0.3	‑0.7	‑0.3

The Government will achieve savings of $1.4 million over four years from the Biodiversity Fund.

This saving is in addition to the savings achieved by the Government from abolishing the Biodiversity Fund as part of repealing the carbon tax.

The savings from this measure will be redirected by the Government to repair the Budget and fund policy priorities.

See also the related expense measure titled Repeal of the Carbon Tax — abolishing other measures.

Caring for our Country — redirection of funding

Expense ($m)
	2012‑13	2013‑14	2014‑15	2015‑16	2016‑17
Department of the Environment	‑	‑6.7	‑	‑	‑

The Government will redirect funding of $6.7 million from the Caring for our Country programme to fund part of the cost of the Royal Commission into the Home Insulation Programme.

See also the related expense measure titled Royal Commission into the Home Insulation Programme in the Attorney‑General's portfolio.

Further information can be found in the joint press release of 14 November 2013 issued by the Attorney‑General and the Minister for the Environment.

Former Department of Climate Change and Energy Efficiency — reduction in funding

Expense ($m)
	2012‑13	2013‑14	2014‑15	2015‑16	2016‑17
Clean Energy Regulator	‑	‑0.4	‑0.8	‑0.8	‑0.8
Department of Foreign Affairs and Trade	‑	‑0.6	‑1.2	‑1.2	‑1.2
Department of Industry	‑	‑1.0	‑0.7	‑0.7	‑0.7
Department of the Environment	‑	‑3.7	‑6.9	‑6.9	‑6.9
Total — Expense	‑	‑5.8	‑9.7	‑9.7	‑9.7
Related capital ($m)
Department of Industry	‑	‑1.0	‑3.1	‑3.1	‑3.1

The Government will achieve savings of $45.0 million over four years (and $12.8 million per annum from 2017‑18) by reducing the functions of the former Department of Climate Change and Energy Efficiency that were transferred to the Department of the Environment, the Clean Energy Regulator, the Department of Industry and the Department of Foreign Affairs and Trade.

The savings from this measure will be redirected by the Government to repair the Budget and fund policy priorities.

This measure implements the savings announced in the Government's pre‑election costings document.

Green Army — establishment

Expense ($m)
	2012‑13	2013‑14	2014‑15	2015‑16	2016‑17
Department of Human Services	‑	4.4	..	‑1.0	‑1.6
Department of the Environment	‑	1.0	50.7	98.5	147.3
Department of Social Services	‑	0.3	‑6.7	‑13.8	‑21.2
Department of Finance	‑	0.1	‑	‑	‑
Department of Employment	‑	..	‑	‑	‑
Total — Expense	‑	5.8	44.0	83.7	124.5
Related capital ($m)
Department of Employment	‑	0.3	‑	‑	‑

The Government will provide $300.0 million over four years (and a further $222.1 million in 2017‑18 and $289.2 million in 2018‑19) to establish the Green Army. The programme will support regional, national and international conservation management objectives through the delivery of local projects, while also providing skills and training to participants.

The programme will initially focus on participants in the 17—24 year age bracket. It will scale up from 2,500 participants undertaking 250 projects in 2014‑15 to 15,000 participants and 1,500 projects in 2018‑19.

The cost of this measure will be partially offset by a reduction in income support payments in the Social Services portfolio.

This measure delivers on the Government's election commitment.

Further information can be found in the Coalition's Policy for a Green Army.

Repeal of the Carbon Tax — abolishing business compensation

Expense ($m)
	2012‑13	2013‑14	2014‑15	2015‑16	2016‑17
Department of Industry	‑	‑	‑254.8	‑270.4	‑207.3
Clean Energy Regulator	‑	‑	‑679.2	‑1,408.6	‑2,192.4
Total — Expense	‑	‑	‑934.0	‑1,679.0	‑2,399.7
Related revenue ($m)
Australian Taxation Office	‑	‑	50.0	150.0	100.0

The Government will achieve savings of $5.3 billion over three years by abolishing business compensation measures associated with the carbon tax from 1 July 2014, including the:

Jobs and Competitiveness Programme;
Energy Efficiency Information Grants;
Clean Energy Skills Package;
Supporting Jobs Package;
Clean Technology Programmes; and
Steel Transformation Plan.

This measure also includes a gain to revenue from returning the instant asset write‑off threshold for small businesses to $5,000, commencing 1 January 2014. The increase in the threshold was linked by the former Government to the introduction of the carbon tax.

This measure delivers on the Government's election commitment to repeal the carbon tax and associated measures.

Further information can be found in the joint press release of 15 October 2013 issued by the Prime Minister and the Minister for the Environment.

Repeal of the Carbon Tax — abolishing energy market compensation

Expense ($m)
	2012‑13	2013‑14	2014‑15	2015‑16	2016‑17
Clean Energy Regulator	‑	‑	‑513.8	‑	‑
Department of the Treasury	‑	‑1.5	‑1.9	‑1.9	‑
Total — Expense	‑	‑1.5	‑515.7	‑1.9	‑
Related revenue ($m)
Department of the Treasury	‑	‑2.8	‑8.4	‑15.3	‑17.8

The Government will achieve net savings of $474.7 million over four years by abolishing the energy market compensation measures associated with the carbon tax. The Loans for Future Vintage Carbon Units programme was abolished from 15 October 2013 and the Energy Security Fund will be abolished from 1 July 2014.

This measure delivers on the Government's election commitment to repeal the carbon tax and associated measures.

Further information can be found in the joint press release of 15 October 2013 issued by the Prime Minister and the Minister for the Environment.

Repeal of the Carbon Tax — abolishing land initiatives and unnecessary bureaucracies

Expense ($m)
	2012‑13	2013‑14	2014‑15	2015‑16	2016‑17
Department of the Treasury	‑	‑	‑	‑	‑
Department of Agriculture	‑	‑	‑4.8	‑6.0	‑4.7
Australian Taxation Office	‑	‑	‑20.0	‑	‑
Climate Change Authority	‑	‑2.3	‑8.7	‑8.6	‑8.6
Productivity Commission	‑	‑3.6	‑4.6	‑	‑
Department of the Environment	‑	‑16.6	‑24.7	‑19.9	‑18.8
Total — Expense	‑	‑22.5	‑62.9	‑34.5	‑32.1

The Government will achieve savings of $152.0 million over four years by abolishing land initiatives and unnecessary government bodies associated with the carbon tax.

This measure includes savings from abolishing the Energy Security Council and Biodiversity Fund from 15 October 2013 and from not proceeding with unnecessary reviews by the Productivity Commission under the Clean Energy Act 2011. The measure also includes savings from abolishing the following programmes from 1 July 2014:

Carbon Farming Futures and Indigenous Carbon Farming Fund;
Carbon Farming Skills Initiative;
Natural Resource Management for Climate Change; and
Conservation tillage refundable tax offsets.

This measure also includes savings from abolishing the Climate Change Authority from a date to be proclaimed following Royal Assent of the Climate Change Authority (Abolition) Bill 2013.

This measure delivers on the Government's election commitment to repeal the carbon tax and associated measures.

Further information can be found in the joint press release of 15 October 2013 issued by the Prime Minister and the Minister for the Environment.

Repeal of the Carbon Tax — abolishing other measures

Expense ($m)
	2012‑13	2013‑14	2014‑15	2015‑16	2016‑17
Australian Competition and Consumer Commission	‑	2.0	6.0	2.0	‑
Australian Securities and Investments Commission	‑	‑	‑0.7	‑	‑
Australian Taxation Office	‑	‑	‑2.3	‑	‑
Department of Social Services	‑	‑	‑9.0	‑	‑
Department of the Prime Minister and Cabinet	‑	‑	‑14.5	‑11.9	‑
Department of Industry	‑	‑	‑23.1	‑13.3	‑12.9
Australian Renewable Energy Agency	‑	‑	‑172.3	‑170.0	‑92.6
Department of the Environment	‑	‑0.6	‑6.1	‑11.1	‑11.7
Clean Energy Finance Corporation	‑	‑177.2	‑320.5	‑322.4	‑323.9
Total — Expense	‑	‑175.7	‑542.6	‑526.7	‑441.2
Related revenue ($m)
Clean Energy Finance Corporation	‑	0.1	‑43.9	‑131.3	‑263.9
Department of the Environment	‑	‑	7.2	3.0	4.0
Australian Taxation Office	‑	‑	‑	‑	‑
Total — Revenue	‑	0.1	‑36.7	‑128.3	‑259.9
Related capital ($m)
Clean Energy Finance Corporation	‑	‑0.1	‑0.3	‑0.3	‑0.3

The Government will achieve savings of $1.3 billion over four years by abolishing a range of initiatives associated with the carbon tax.

This measure includes savings from abolishing the Climate Commission from 15 October 2013 and the Clean Energy Finance Corporation from 28 days following Royal Assent of the Clean Energy Finance Corporation (Abolition) Bill 2013. It also includes savings from:

abolishing the Low Carbon Communities programme, Remote Indigenous Energy programme and Voluntary Action Pledge Fund from 1 July 2014;
terminating funding for the Energy Efficiency Opportunities programme from 1 July 2014;
reducing funding for the Australian Renewable Energy Agency from 2014‑15;
not providing additional support to the existing industry funded and operated destruction incentives programme for synthetic greenhouse gases and ozone depleting substances from 1 July 2014; and
not proceeding with the second round of personal income tax cuts associated with the carbon tax, which were initially legislated to commence on 1 July 2015 but were deferred by the former Government in the 2013‑14 Budget.

The Government will also provide $10.0 million over three years to the Australian Competition and Consumer Commission to ensure the benefits of the repeal of the carbon tax flow through to consumers.

This measure delivers on the Government's election commitment to repeal the carbon tax and associated measures.

Further information can be found in the joint press release of 15 October 2013 issued by the Prime Minister and the Minister for the Environment.

Water — rephase four years of spending over six years

Expense ($m)
	2012‑13	2013‑14	2014‑15	2015‑16	2016‑17
Department of the Treasury	‑	‑10.0	‑	‑	‑
Department of the Environment	‑	‑12.4	‑18.7	‑29.9	‑29.1
Total — Expense	‑	‑22.4	‑18.7	‑29.9	‑29.1
Related capital ($m)
Department of the Environment	‑	‑31.8	‑109.5	‑188.2	‑220.4

The Government will rephase expenditure of $551.0 million in the Restoring the Balance in the Murray‑Darling Basin programme and $99.0 million in the Sustainable Rural Water Use and Infrastructure programme to beyond the forward estimates ($459.5 million in 2017‑18 and $190.5 million in 2018‑19). The two programmes will also be amalgamated to provide greater flexibility in managing the Government's water reform priorities.

The Government will also cease the Strategic Sub‑System Reconfiguration programme, with the funding to be redirected to other water priorities.

Savings from this programme were identified in the Government's pre‑election costings document.

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