Clean Energy Legislation (Carbon Tax Repeal) Bill 2013 and related bills

The majority succeeded in passing a motion that the bills be read a second time. This means that the majority agree with the main idea of the bills and can now discuss them in detail.

After some discussion, the bills were subsequently agreed to and given a third reading without division.

The eleven bills are a package to remove the carbon pricing mechanism, which was introduced by the Australian Labor Party while in government. The Coalition described the mechanism as a “carbon tax” and removing it was a key policy platform during the 2013 election.(You can read more about the Coalition's policy to remove the carbon price here. )

The eleven bills are:

• Clean Energy Legislation (Carbon Tax Repeal) Bill 2013
• True-up Shortfall Levy (General) (Carbon Tax Repeal) Bill 2013
• True-up Shortfall Levy (Excise) (Carbon Tax Repeal) Bill 2013
• Customs Tariff Amendment (Carbon Tax Repeal) Bill 2013
• Excise Tariff Amendment (Carbon Tax Repeal) Bill 2013
• Ozone Protection and Synthetic Greenhouse Gas (Import Levy) Amendment (Carbon Tax Repeal) Bill 2013
• Ozone Protection and Synthetic Greenhouse Gas (Manufacture Levy) Amendment (Carbon Tax Repeal) Bill 2013
• Ozone Protection and Synthetic Greenhouse Gas (Import Levy) (Transitional Provisions) Bill 2013
• Climate Change Authority (Abolition) Bill 2013
• Clean Energy (Income Tax Rates and Other Amendments) Bill 2013
• Clean Energy Finance Corporation (Abolition) Bill 2013

Background to the bills

The carbon pricing mechanism commenced on 1 July 2012.(For more information on the carbon pricing mechanism and how it works, please see the Clean Energy Regulator’s website.) It is an emissions trading scheme that puts a price on carbon emissions. It applies to “liable entities” (a group that includes companies that emit a high level of greenhouse gases). Initially the price of carbon is fixed by the mechanism but from 1 July 2015 the price will be set by the market, though the Labor Government did announce plans to bring this forward to 1 July 2014 just before they were defeated by the Coalition in the 2013 election.