Ian Goodenough (Moore, Liberal Party) Share this | Link to this | Hansard source

My question is to the Treasurer. Will the Treasurer inform the House of the consequences of a failure to repeal the carbon tax? How will the carbon tax continue to damage the economy if it is not repealed?

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

I thank the honourable member for Moore for his question. I note that he is a very worthy successor to his hugely impressive predecessor. Coming from Western Australia, he knows how important it is to repeal the carbon tax. I regret to inform the House that as a result of Labor's refusal to terminate the carbon tax the carbon tax will go up on 1 July this year from $24.15 a tonne to $25.40 a tonne—a five per cent increase in the carbon tax. If the Labor Party let us keep our election promise to get rid of the carbon tax, and if Labor were not blocking the repeal of the carbon tax, then we could get rid of the carbon tax immediately and prevent it going up on 1 July next year. They have already had a chance to support our repeal of the carbon tax laws. We are going to give them another chance next week to repeal that carbon tax laws before the carbon tax goes up again, on 1 July.

We know the Leader of the Opposition has been running around to a few business groups in the last 24 hours. He spoke to the CEO's of some foreign entities and to the Business Council of Australia. What he has is one message for business and another message for the public. The message to businesses is along the lines, 'Don't worry, that carbon tax is going to go.' But to the public he says, 'Hang on, we are fighting to keep the carbon tax, because we want to see your electricity prices rise.' And rise they will.

Getting rid of the carbon tax on average relieves each household of $550 in costs. It was almost one year ago that Kevin Rudd—remember him?—stated before the election, in the electorate of Herbert, in Townsville:

The Labor government has decided to terminate the carbon tax to help cost-of-living pressures for families and to reduce the costs for small business.

There was Kevin, under the palm trees, up there with the member for McMahon right by his side—I hope he has not forgotten that. The member for McMahon was there saying that terminating the carbon tax was part of our positive economic plan.

But that was 12 months ago—like, they don't keep their promises.

Mr Shorten interjecting—

When it comes to being loyal and honest, you are not at the top of the queue, Bill. One of the best examples of that is your backflip on the carbon tax.