The Government has announced that it will move to an emissions trading scheme a year earlier on 1 July 2014 and that the fixed price of carbon will be replaced with a floating [market based] price from that date. Finance Minister Penny Wong said the Government would need to legislate ahead of the 2014-15 start of the ETS. As there will be a cost to the Budget of several billion dollars, the Government plans to make spending cuts, details of which are expected to be announced in coming days.
The Treasurer indicated that compensation measures for households would stay, but would not comment about industry assistance other than to say “there are industry assistance measures, which are predicated on a certain price”. He also declined to rule in or out retaining the Schoolkids Bonus or changes concerning the Clean Energy Finance Corporation. Concerning renewable energy projects, Mr Bowen said “industry will adjust”.
Source: Transcripts of interviews with the Prime Minister, Treasurer and Finance Minister, 14 and 15 July 2013
[LTN 134, 15/7/13]