Explanatory MemorandumCirculated By the Authority of the Minister for Families, Housing, Community Services and Indigenous Affairs, the Hon Jenny Macklin MP
The 2011 Clean Energy Legislative Package
The Clean Energy (Household Assistance Amendments) Bill 2011 is part of the Clean Energy Legislative Package, which sets up the carbon pricing mechanism (the mechanism) as part of the Government's climate change plan, as set out in Securing a clean energy future: the Australian Government's climate change plan.
The full policy context and background to the mechanism is set out in the explanatory memorandum for the Clean Energy Bill 2011. A description of the Bills which will introduce the mechanism is set out below.
The Clean Energy Bill 2011 and related Bills
Clean Energy Bill 2011
creates the mechanism. It sets out the structure of the mechanism and process for its introduction. These include:
Clean Energy Regulator Bill 2011
sets up the Regulator, which is a statutory authority that will administer the mechanism and enforce the law.
The responsibilities of the Regulator include:
Climate Change Authority Bill 2011
sets up the Authority, which will be an independent body that provides the Government with expert advice on key aspects of the mechanism and the Government's climate change mitigation initiatives.
The Government will remain responsible for carbon pricing policy decisions.
This Bill also sets up the Land Sector Carbon and Biodiversity Board which will advise on key initiatives in the land sector.
Clean Energy (Consequential Amendments) Bill 2011
makes consequential amendments to ensure:
|Procedural Bills||Those elements of the mechanism which oblige a person to pay money are implemented through separate Bills that comply with the requirements of section 55 of the
These Bills are the Clean Energy (Unit Shortfall Charge-General) Bill 2011, Clean Energy (Unit Issue Charge - Fixed Charge) Bill 2011, Clean Energy (Unit Issue Charges - Auctions) Bill 2011, Clean Energy (Charges-Excise) Bill 2011, Clean Energy (Charges-Customs) Bill 2011, Clean Energy (International Unit Surrender Charge) Bill 2011, Ozone Protection and Synthetic Greenhouse Gas (Manufacture Levy) Amendment Bill 2011 and Ozone Protection and Synthetic Greenhouse Gas (Import Levy) Amendment Bill 2011.
|Related Bills||Other elements of the Government's Climate Change Plan are being implemented through other legislation. These are:
This Bill needs to be read in the context, in particular, of the Clean Energy Bill 2011.
Clean Energy (Household Assistance Amendments) Bill 2011
This Bill delivers on the Government's commitments to low and middle-income households to help Australians adjust to a low emissions economy, and assist with the cost impacts resulting from a carbon price. This household assistance will provide higher payments, equivalent to a 1.7 per cent increase, to pensioners, veterans, self-funded retirees and families. This Bill also establishes new supplements for low-income families, single income families and certain households that have significantly higher than average electricity costs due to a medical condition, ageing or disability.
Further household assistance measures made through amendments to the tax laws are introduced separately.
Date of effect and application
The provisions in this Bill apply from various dates. Generally, the clean energy advance provisions in the Bill apply from 14 May 2012, with most payments being made over the period 14 May to 30 June 2012. The clean energy supplement provisions apply from 2013 after the relevant clean energy advance period. Commencement of the whole Bill is dependent upon commencement of the new Clean Energy Act 2011.
The measures are based on the Government's announcement of its Clean Energy Future Plan on 10 July 2011 as set out in Securing Australia's clean energy future: the Australian Government's climate change plan.
Financial impact statement
The financial impact statement is included in the explanatory memorandum for the Clean Energy Bill 2011.
Regulation impact statement
The Regulation Impact Statement for the mechanism, entitled Australia's plan for a clean energy future, is available at http://ris.finance.gov.au. The Regulation Impact Statement was prepared by the Department of Climate Change and Energy Efficiency and has been assessed as adequate by the Office of Best Practice Regulation.