9th Jul 2014, 11:29 AM – Senate Clean Energy Legislation (Carbon Tax Repeal) Bill 2013 [No. 2] and related bills - Second Reading - Reject the bills

The majority voted against a motion introduced by Greens Senator Christine Milne, which means that it was unsuccessful. The motion would have amended the original motion "that the bills be read for a second time" with the following:

At the end of the motion, add:

but the Senate:

(a) rejects this Bill and the related Bills;

(b) recognises that:

(i) the world is on track for 4 degrees of warming; and

(ii) warming of less than 1 degree is already intensifying extreme weather events in Australia and around the world with enormous costs to life and property;

(c) calls on the government to:

(i) protect the Australian people and environment from climate change by approving no new coal mines or extensions of existing mines, or new coal export terminals; and

(ii) adopt a trajectory of 40-60% below 2000 levels by 2030 and net carbon zero by 2050 emissions reduction target in global negotiations for a 2015 treaty.

Background to the bills

The Clean Energy Legislation (Carbon Tax Repeal) Bill 2013 (No. 2) and related bills were introduced 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 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.

This is the second time that this package of bills has been introduced, after they were rejected in the Senate during the third reading stage the first time round.(See that division here.)

The other related bills that were introduced along with the Clean Energy Legislation (Carbon Tax Repeal) Bill 2013 (No. 2) are:

• Ozone Protection and Synthetic Greenhouse Gas (Import Levy) Amendment (Carbon Tax Repeal) Bill 2013 (No. 2);
• Ozone Protection and Synthetic Greenhouse Gas (Manufacture Levy) Amendment (Carbon Tax Repeal) Bill 2013 (No. 2);
• True-up Shortfall Levy (General) (Carbon Tax Repeal) Bill 2013 (No. 2);
• True-up Shortfall Levy (Excise) (Carbon Tax Repeal) Bill 2013 (No. 2);
• Ozone Protection and Synthetic Greenhouse Gas (Import Levy) (Transitional Provisions) Bill 2013 (No. 2);
• Customs Tariff Amendment (Carbon Tax Repeal) Bill 2013 (No. 2);
• Excise Tariff Amendment (Carbon Tax Repeal) Bill 2013 (No. 2);
• Clean Energy (Income Tax Rates and Other Amendments) Bill 2013 (No. 2);
• Climate Change Authority (Abolition) Bill 2013 (No. 2).