House debates

Monday, 10 September 2012

Constituency Statements

Higgins Electorate: Carbon Pricing

10:54 am

Photo of Kelly O'DwyerKelly O'Dwyer (Higgins, Liberal Party) Share this | Hansard source

Millions of people will be better off under the carbon price. That was the claim made by the Prime Minister in her efforts to justify her broken promise to the Australian people. Yet just like her promise to the Australian people before the last election that there would be no carbon tax under her government—a promise she broke less than a month after the election—the Prime Minister's promise that 'millions will be better off' also does not withstand scrutiny and simply cannot be believed. In fact, millions will be worse off according to the government's own calculations. It is true that millions of small businesses will be worse off under this new carbon tax.

I want today to talk about one example in my own electorate of Higgins: the Malvernvale Hotel, which is located right across the road opposite my electorate office. They received their first power bill after the introduction of the carbon tax only to discover it had increased from $6,005.38 in June to $7,365.37 in July, a rise of $1,359.99. For the month of July, the carbon charge was $1,162.87, which represents 85.5 per cent of the increase and 15.8 per cent of the total bill. The Prime Minister has consistently claimed the carbon tax would increase electricity bills only by 10 per cent. Clearly, this is not the case. The Prime Minister's recent attempt to deflect attention from the carbon tax by shifting the issue of higher power prices to the states does not stand scrutiny. Of the increase in the Malvernvale Hotel's bill, 85.5 per cent—the overall majority—is directly attributable to the carbon tax.

To try to pin the blame on the states for the significant increase in the Malvernvale Hotel's power bill is downright wrong. It is also interesting to note that the government is only now looking to take action against the states on electricity prices. It was this government that took no action as state Labor governments increased power prices through unsustainable feed-in tariffs for some green electricity schemes. Coalition state governments are now having to fix Labor's mess, and for the Prime Minister to attempt to shift the blame to the states is the ultimate hypocrisy.

There is, of course, a better way, and we all know what that is: to get rid of the government's carbon tax, a tax that has required two major changes within its first nine weeks of operation. We know that there is a better way. The better was is to elect a government that is guided by principles and competence, a government that will act in people's interests and not simply talk about it: a coalition government.


Tibor Majlath
Posted on 23 Aug 2015 11:44 am

FIRSTLY, a 'bill' is the total amount paid - it includes 1. electricity used; 2. network charges. 3. taxes.

The LNP's Goods & Services Tax (levied on the total bill) = $7365.37 / 11 = $669.58

Bill without the GST = $7365.37 x 10 / 11 = $6695.79

SECONDLY, with the repeal of the CT, Minister for the Environment, Greg Hunt stated (22 October 2014) that "In Victoria, power bills are up to 12.4 per cent lower than they would have been with the carbon tax". My electricity went up 10% with the CT and fell accordingly. Therefore, the alleged 'carbon charge' of $1162.87 or 19.364% increase cannot all be due to the carbon tax.

We don't know how the bill breaks down into "electricity used" and "network charges". Since the CT was levied on the c/kwh used, assume the $6695.79 was entirely for electricity used. Also assume the CT was the common average rate of 10%. The first assumption means the calculated carbon tax is now much higher than in reality!

Labor's Carbon Tax (levied on electricity used) = $6695.79 / 11 = $608.71

Bill without the 'Carbon charges' = $6695.79 x 10 / 11 = $6087.08

THIRDLY, the breakdown of the total bill of $7,365.37 is

pre-tax price : $6,005.38 is 81.5% of $7,365.37
general price increase? : $81.70 is 1.11% of $7,365.37
Labor's 'carbon charge' : $608.71 is 8.26% of $7,365.37
Liberal/National's tax : $669.58 is 9.09% of $7,365.37

FINALLY, the breakdown of the increase of $1,359.99 is

general price increase : $81.70 is 6% of $1,359.99
Labor's 'carbon charge' : $608.71 is 44.8% of $1,359.99 not 85%
Liberal/National's tax : $669.58 is 49.2% of $1,359.99

Difficult to make any sense of such claims without making unnecessary assumptions when information is left out .