Treasury estimates of increases in electricity prices associated with the Carbon Pollution Reduction Scheme are seven per cent in the first year and 12 per cent in the second year. The government will in fact assist Australian small businesses to adapt to a carbon constrained economy, and all revenue—every bit of revenue—from the Carbon Pollution Reduction Scheme will be used to help households and businesses to adjust to invest in clean energy options. The Treasury modelling is based on a passing through of the carbon price, and that is why the government is providing compensation to households.