Second Reading SpeechMr Combet (Minister for Climate Change and Energy Efficiency)
That this bill be now read a second time.
This bill will establish, through the fuel tax system, a cent-for-cent impact on businesses, equivalent to the price on the carbon content of the transport fuels they use.
This bill will amend the Fuel Tax Act 2006 such that the business fuel tax credit entitlement will be reduced by an amount reflecting the price on the carbon emissions of the transport fuels they use had transport fuel emissions been liable emissions under the carbon-pricing mechanism.
The heavy on-road, agricultural, forestry and fishing industries will be exempted from the carbon reduction to their fuel tax credit entitlements.
This means that the agricultural, forestry and fishing industries will not pay an effective carbon price on emissions from their off-road use of transport fuels, including fuels used in stationary plant and equipment.
In addition, this bill provides that no effective carbon price will be payable in respect of emissions from heavy on-road transport.
It is the government's intention that separate arrangements will be made after the next election so that heavy on-road transport will become liable for a carbon charge after 1 July 2014.
While transport fuel emissions will generally not count towards an entity's liable emissions under the carbon-pricing mechanism, large carbon emitters will have the choice to opt-in to the carbon-pricing mechanism for their fuel emissions. In return they will not be subject to the carbon reduction to their fuel tax credit entitlement.
Full details of the Clean Energy (Fuel Tax Legislation Amendment) Bill are contained in the explanatory memorandum. I commend the bill to the House.