Joe Hockey (North Sydney, Liberal Party, Shadow Treasurer) Share this | Link to this | Hansard source

My question is to the Prime Minister. Prime Minister, given that single income people who earn just $45,000 a year are not fully compensated for price increases as a result of your emissions trading scheme, will you now inform the Australian people how much worse off someone earning $45,000 will be?

Kevin Rudd (Griffith, Australian Labor Party, Prime Minister) Share this | Link to this | Hansard source

The honourable member will know full well that each family’s income circumstances differ depending on the numbers of children and the arrangements.

Opposition Members:

Opposition members interjecting—

Kevin Rudd (Griffith, Australian Labor Party, Prime Minister) Share this | Link to this | Hansard source

I am about to go to the question that was asked. First and foremost I say to the shadow Treasurer that when it comes to compensation for the government’s proposed Carbon Pollution Reduction Scheme all low-income households will receive full assistance. Secondly, I say to the shadow Treasurer that 50 per cent of middle-income households will receive full assistance. Practically all middle-income households will receive some assistance and finally 92 per cent of all households will receive assistance. On average these households will receive about $660 of compensation or be about $60 better off as a result of the CPRS. In the definition of the thresholds of household income, which goes to the actual question that the honourable gentlemen asked, the definition of low household income as far as a single income is concerned is $30,000, for a couple without children it is $45,000, for a couple with children it is $60,000—

Tony Abbott (Warringah, Liberal Party, Leader of the Opposition) Share this | Link to this | Hansard source

Mr Speaker, I raise a point of order to do with relevance. The Prime Minister was asked a specific question, ‘How much worse off would a single income earner on $45,000 a year be?’ It is a simple question.

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

The Leader of the Opposition will resume his seat. The Prime Minister is responding to the question.

Kevin Rudd (Griffith, Australian Labor Party, Prime Minister) Share this | Link to this | Hansard source

In response to the shadow Treasurer’s question, first of all what I detailed was the spectrum of the government’s compensation package and, secondly, went to the income thresholds which define first of all low-income earners, medium-income earners and high. Low-income earners are those I just defined, medium single income earners are between $30,000 to $80,000 and between $45,000 to $120,000 for a couple without children—

Christopher Pyne (Sturt, Liberal Party, Shadow Minister for Education, Apprenticeships and Training) Share this | Link to this | Hansard source

Mr Speaker, I rise on a point of order to do with relevance. The opposition has listened to your admonition to ask specific questions so that they will not be able to be reinterpreted. The Prime Minister was not asked about the ‘spectrum’ of compensation as he has defined it. He was asked about a single income person on $45,000 a year.

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

The Manager of Opposition Business will resume his seat. As I have said before the style of the answer given is not necessarily a multiple-choice single answer—you can get the Master’s thesis or you can get the PhD thesis. The Prime Minister is responding to the question.

Kevin Rudd (Griffith, Australian Labor Party, Prime Minister) Share this | Link to this | Hansard source

As I was saying before the actual thresholds which apply to these levels of compensation go from low through medium to high ranging from $30,000 for a single income earner, medium being $30,000 to $80,000 and high above $80,000. In terms of the actual level of assistance, which goes to the other part of the honourable member’s question, for low-income earners there are 2.9 million households in the country. The average annual price impact is $420 and the average annual assistance will be $610. For middle-income earners there are 3.7 million households. The average annual impact will be $650 and the average annual assistance will be $700. If the honourable member would like further information on these matters, I am sure we could provide it in due course.