Australia's Carbon Pollution Reduction Scheme - 10 key commitments
FACT SHEET 2
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1. INVESTING IN HOUSEHOLDS AND ECONOMIC GROWTH
Every cent raised from the Carbon Pollution Reduction Scheme will be used to help Australians - households and business - adjust to the scheme and to invest in clean energy options.
2. CENT FOR CENT OFFSET IN FUEL PRICE IMPACTS
Fuel taxes will be cut on a cent for cent basis to offset the initial price impact on fuel associated with the introduction of the Carbon Pollution Reduction Scheme. We will periodically assess the adequacy of this for three years and adjust this offset accordingly. At the end of this three year period, the Government will review this adjustment mechanism.
3. INCREASING PAYMENTS TO PENSIONERS, CARERS AND SENIORS
People in receipt of pensioner, carer, senior and allowance benefits will have their payments increased above automatic indexation and will be provided other assistance to meet the overall increase in the cost of living flowing from the scheme.
4. HELPING LOW-INCOME HOUSEHOLDS
Assistance to other low-income households will be increased through the tax and payment system to meet the overall increase in the cost of living flowing from the scheme.
5. HELPING MIDDLE-INCOME HOUSEHOLDS
Assistance will be provided to middle-income households to help them meet any overall increase in the cost of living flowing from the scheme.
6. REVIEWING AND IMPROVING ASSISTANCE MEASURES
The adequacy of payments to beneficiaries and recipients of family assistance to help with the overall impacts of the scheme will be reviewed annually in the Budget context.
7. RAMPING UP ENERGY EFFICIENCY
Additional support will be provided through the introduction of energy efficiency measures and consumer information to help households take practical action, reduce carbon pollution and save money on energy bills.
8. SUPPORTING HEAVY VEHICLE ROAD USERS
For heavy vehicle road users, fuel taxes will be cut on a cent for cent basis to offset the initial price impact on fuel associated with the impact of the Carbon Pollution Reduction Scheme. The Government will review this measure after one year.
9. CREATING THE CLIMATE CHANGE ACTION FUND
The Climate Change Action Fund (CCAF) will be set up to assist business transition to a cleaner economy. The CCAF will provide partnership funding for a range of activities, including:
- Capital investment in innovative new low emissions processes
- Industrial energy efficiency projects with long payback periods
- Dissemination of best and innovative practice among small to medium sized enterprises.
10. KEEPING THE ENERGY INDUSTRY STRONG
A limited amount of direct assistance will be provided to existing coal-fired electricity generators to ameliorate the risk of adversely affecting the investment environment. The Government intends to deliver this assistance, in part, through the new Electricity Sector Adjustment Scheme (ESAS).
July 2008
