Australian Government, 2009‑10 Budget
Budget

Part 1: Revenue Measures

Cross Portfolio

Carbon Pollution Reduction Scheme — revised implementation

Revenue ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Various Agencies ‑7,450.0 ‑2,990.0 988.0
Various Agencies ‑5,800.0 ‑3,495.0 103.0

The Government will delay the start date of the Carbon Pollution Reduction Scheme (the scheme) by one year, to 1 July 2011, to help Australian businesses manage the impacts of the global recession. The measure is expected to be broadly budget neutral (with a cost of $260.0 million over three years from 2010‑11). The financial impact of this measure reflects both the impact of the revised implementation and changes in economic parameters since the release of the February 2009 Updated Economic and Fiscal Outlook.

To support jobs and assist businesses, a fixed price of $10 per tonne of CO2‑e will apply to emissions in 2011‑12. The market will set the price of Australian Emissions Units dated 2012‑13 onwards.

Previously announced industry and household assistance will be delayed until the scheme is introduced in 2011‑12.

  • On commencement of the scheme, emissions‑intensive trade‑exposed assistance and the Electricity Sector Adjustment Scheme will be delivered in a way that provides assistance equivalent to the assistance that would have been received if the price were flexible (but the price at acquittal of liability were $10 per tonne of CO2‑e).
  • In 2011‑12, household assistance will be proportionately adjusted to align the level of assistance with the lower estimated cost of living impacts resulting from an initial $10 fixed carbon price. In 2012‑13, household assistance will be provided on the basis of the estimated cost of living impacts of a flexible carbon price. Each year, the adequacy of this assistance will be reviewed in the context of the Budget.
  • Fuel tax transitional arrangements will be deferred by one year, with all other elements kept in place, and calibrated to the expected carbon price.

Provision for this measure has been made in the contingency reserve.

Further information can be found in the press releases of 4 May 2009 issued by the Prime Minister, Treasurer and Minister for Climate Change and Water.

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