2nd Dec 2013, 8:42 PM – Senate Clean Energy Legislation (Carbon Tax Repeal) Bill 2013 - Second Reading - That debate on Clean Energy Finance Corp and Climate Change Authority have precedence over debate on th...

This division relates to the Policies For a carbon price and For renewable energy.

The majority voted in favour of a motion that: At the end of the motion that the resumption of debate be made an order of debate for a later hour add: 'and the orders of the day for the resumption of the second reading debate on the Clean Energy Finance Corporation (Abolition) Bill 2013, and subsequently the Climate Change Authority (Abolition) Bill 2013, have precedence over this bill and the other related bills until determined.' (You can read the associated debate here. It commenced after 8:38 pm. )

Passing this motion means that the second reading debate about the Clean Energy Finance Corporation (Abolition) Bill 2013 and the Climate Change Authority (Abolition) Bill 2013 will be resumed before the debate about the Clean Energy Legislation (Carbon Tax Repeal) Bill 2013 and other related bills.

The motion was introduced by Labor Senator Penny Wong.

Background to the bills

The Clean Energy Legislation (Carbon Tax Repeal) Bill 2013 was introduced into Parliament as part of a package of eleven bills to remove the carbon pricing mechanism and abolish the Clean Energy Finance Corporation and the Climate Change Authority.

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

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.

Removing the carbon price was one of the Coalition’s key policy platforms during the 2013 election.(You can read more about the Coalition's policy to remove the carbon price here.)