Milton Dick (Speaker) Share this | Link to this | Hansard source

I have received a letter from the honourable member for Wentworth proposing that a definite matter of public importance be submitted to the House for discussion, namely:

The urgent need for the government to accelerate action to help households transition away from fossil fuels and electrify with cheaper renewable energy.

I call upon those honourable members who approve of the proposed discussion to rise in their places.

M ore than the number of members required by the standing orders having risen in their places

Allegra Spender (Wentworth, Independent) Share this | Link to this | Hansard source

Accelerating action to help households transition away from fossil fuels and electrify with renewables is an urgent matter of public importance. This week the Australian Energy Market Operator told us what we already know: energy transition is nowhere near fast enough. We are a long way from meeting even our modest climate goals, and we are running out of time. The transition must be a whole-of-economy effect, but one source is particularly close to home: Australia's 10 million households remain dependent on inefficient fossil fuel appliances and together account for more than 40 per cent of emissions in the domestic economy. At the same time, our reliance on expensive fossil fuels means that more than one in 10 Australians are skipping meals to pay their energy bills. We've dragged our feet on household transition for too long, and Australians are paying the price. As the Grattan Institute made clear this week, and as numerous others have made clear before, all electric homes are cheaper to run, better for our health and essential to reaching net zero.

We should be accelerating this transition, deploying rooftop solar, household batteries, heat pumps and electric cooktops at pace. But, instead, we are making things worse. We've got the policy wrong for a decade. More households are joining the gas network each year than leaving it. That's it; more people are joining gas rather than leaving it. That's despite gas being more expensive, bad for our health and contributing to nearly a quarter of our carbon emissions. But we have just enough time to turn things around.

Converting our homes to all-electric will be a major logistical challenge, but because electrical appliances are more efficient and rooftop solar is so cheap, it is a $300 billion economic opportunity that's worth the effort. The funding announced in May's budget is welcome, but it must be just the start. The government should prioritise three areas.

First, we need to start getting off gas now. The process will take time and will take leadership. That's why today I'm calling on the federal government to work with the states to end gas connections for new homes and put in place a clear road map and time frame for ending residential gas use across Australia. The government set aside nearly $7 million of taxpayers' money in the budget to fund a future gas strategy. That strategy should define a smooth exit from household gas which includes adjusting the regulatory framework so that the network is the right size and serves the right places, managing the costs of gas exit so that these are born equitably, and producing a blueprint for market reform so that the governance of our energy sector supports an all-electric future. The community needs to get off gas, and we need to support them to do that in a measured, thoughtful way that works for Australian households and works for families' power bills but also works for climate.

Second, we need to deploy existing funding effectively. The $1 billion already committed to the Clean Energy Finance Corporation for household electrification is welcome, but it is less than 10 per cent of the support that Rewiring Australia estimates is needed to electrify every household. With the budget constrained, private capital is absolutely crucial to this transformation. The Clean Energy Finance Corporation's $1 billion could do 10 times as much work, if not more, if it were deployed through mechanisms that leverage private markets. By providing guarantees to private sector lending rather than providing loans directly, the CEFC could support many multiples of the 110,000 households currently anticipated. This is the opportunity to move beyond 110,000 households and support literally millions of Australian families to get into cheaper household electrification. This is a model that is common practice in markets across the world. It works and delivers value for money.

Finally, we need a one-stop shop for electrification. We need to make sure that consumers have the information and the support to make the right decisions for transition. I am frequently told by constituents that they want to get solar, a battery or a heat pump but they just don't know where to start, particularly with complicated layers of federal, state and local incentives and regulation. Multiply that by 151 electorates and we need a significant and sustained communications campaign to electrify every Australian household. A one-stop shop should be central to this. It would be a platform that explains clearly how to electrify and how to solve problems at each stage of the process, provides a comprehensive list of government incentives, shows household solar rooftop potential and helps families estimate the financial benefits of electrification.

Accelerating household electrification is an urgent matter of public importance. It won't be easy, it will take time, but we can do it. Let's get on with the job.

Justine Elliot (Richmond, Australian Labor Party, Assistant Minister for Social Services) Share this | Link to this | Hansard source

I'm very pleased to be speaking on this matter of public importance. I know this is an issue that the member for Wentworth is very committed to, and I note her commitment in the speech that she just gave. It is also an issue that those of us on this side of the House are incredibly passionate about. It drives many of the policies that we put in place. We put them in place because we know that renewable energy is the cheapest form of energy. That's why we're investing in nation-building initiatives such as Rewiring the Nation and the Capacity Investment Scheme. It will futureproof our grid.

This is on top of the whole suite of measures that we have right across the board, from that massive investment to assisting households to enable them to take up the many benefits of renewable energy, particularly in terms of reducing their power prices. We're doing that because ours is a government that is committed to transitioning to renewable energy. We are, of course, at the same time also providing important cost-of-living relief for Australian families, because we do understand how difficult it is at the moment, particularly with power bills, and we do have our energy relief plan, which is very targeted.

Part of the suite of measures which we have brought in means supporting households, small businesses and community facilities to utilise renewable energy by providing them with incentives which lessen their power bills. All of these initiatives working together are so incredibly important, and the cost-of-living measures that we've introduced are vitally important at this time.

We have a very strong commitment to all of these measures. Particularly when we look at that in contrast to the Liberals and Nationals, it's a very big difference. We saw a decade of inaction when they were in government, and all we've seen them do in opposition is vote to make power bills higher for families and refuse to support action that will actually assist families. That's why our action in government, investing in longer term plans to get cleaner, cheaper energy to all Australians, has been vitally important, and we do that because we believe in the absolute potential of renewable energy. We know it's so important. It's also something the country voted for. People wanted to see action on climate change. They wanted to see more initiatives across the board to deliver more effective renewable energy. I would also add that, in regions like mine, this action is so important for the great economic potential and jobs growth it brings. This is an issue that we feel incredibly passionate about.

I'm very proud of all the action we've taken. We've legislated Australia's target of a 43 per cent reduction in emissions by 2030 and net zero by 2050. We've supercharged the offshore wind industry and delivered the $20 billion Rewiring the Nation investment to decarbonise our grid and to take us to 82 per cent renewables by 2030. We've put a whole range of measures in place. There's also been so much other action in our recent budget. There's the $1 billion to the Clean Energy Finance Corporation to turbocharge financing options for household energy upgrades, to upgrade homes with battery-ready solar PV, modern appliances and other improvements. This will help more than 100,000 households lower their energy bills. There's the $300 million to support upgrades to social housing and the $310 million for the Small Business Energy Incentive, which supports more efficient use of energy. There's also the $100 million for the Community Energy Upgrades Fund to co-fund upgrades with local councils so they can be more energy efficient in all the wonderful services that our local councils provide. There's been an incredibly positive response from all of our councils in relation to this particular initiative. This whole suite of measures is about giving Australians a choice to take actions that will suit their homes and their businesses to reduce their energy bills. This is on top of other initiatives, like our rollout of community batteries and helping Australians buy cheaper, cleaner electric vehicles.

There's a whole range of measures that we've brought in since we've been in government, particularly because we know how important it is after the decade of inaction by the previous government. The Liberals and Nationals failed to take action when it came to investing in renewables and failed to take action when it came to addressing climate change. Look at their record. We saw 20 failed energy policies when they were in government. It seemed every other week they were rolling out another policy, each of which failed and had nothing in it. They've voted down every initiative we've put forward to create energy relief.

There has been one policy they've brought up whilst in opposition: nuclear, yet again. That's all we hear from them. Here we go! It's their only approach to energy relief. In my community and in many communities, people are completely opposed to nuclear. They've said that many times, and they're opposed to it for many reasons. One is that we know it is far too dangerous and far too expensive, yet those opposite keep rolling out this idea. They have no other plans and no other initiatives after a decade of inaction. There are many reasons why nuclear power would be bad for our country, particularly the cost. The fact is that even a small modular reactor would cost a massive $5 billion to build. They'd need at least 80 of those around Australia, so it would be incredibly expensive. I'd really like to know where the Liberal and National parties plan to put all these nuclear reactors. We know they need to be near water, which is one of the reasons communities like mine are very much opposed to nuclear. Essentially, this is the only policy we've heard from the Liberals and Nationals of late, and they have rejected all of the really proactive policies that we've put forward. I can tell you the community is opposed to nuclear, yet those opposite keep rolling out the same old idea.

What is so disappointing is that during the wasted decade of inaction they could've been investing in the cheapest form of energy, in renewables. They could've been doing that the entire time. Imagine how much further along we would be if we'd had that decade of investment, but they didn't do that. It's taken a Labor government to do that, and we are very proud of all the actions that we've taken. So many communities that have suffered over many years, particularly rural and regional communities, now have the opportunity to unlock their economic potential and jobs growth because of that investment.

Action on climate change is something we are absolutely committed to. We've made that commitment for many years and have taken it to many elections. We are following through and we're very proud we're following through on this very comprehensive set of measures in terms of our investments there—from households to councils, providing a huge investment in supercharging our renewable capacity as well as providing, at the moment, important relief for those people who are struggling with their power bills. We are delivering on that commitment because we're really focused on transforming Australia's economy to a low-carbon economy. But we know that it takes a massive investment to do that, and that is something that we are doing. We really need to make sure that our country is positioned to become a renewable energy superpower. You can see in our budget all of the commitments that we made to save Australians money on energy bills and to invest in nation building new industries.

And we need to be making sure that all those communities and households are getting all of the assistance that they can. I mentioned before some of those programs that will absolutely assist households, small businesses and as many in our community, through our local councils, get those really important energy upgrades. At that level it's so vitally important that we have ongoing investment. There has been a really positive response to our plans in terms of what we've announced. Many small businesses have spoken to me about it—many households as well. And, as I say, many councils are really pleased that we are doing that at that real grassroots level to assist people. You need to provide the incentives for people to do that. You have to have the commitment and provide the incentives, and we have been doing that in our budget and doing that very proudly. So there is a lot of opportunities moving forward, and a lot of people are very positive about that.

In addition to those targeted household rebates, which are so vitally important, providing energy bill relief, our recent budget is funding a whole range of plans to ensure that those households and communities can take advantage of the savings from smarter energy use. It's all part of ensuring the nation is absolutely ready and prepared to capitalise on this global boom in clean energy investment. As a government, we're incredibly proud of that, and I know there are many who share our commitment to this as well. We will, obviously, keep working together to that aim in terms of ensuring that we can totally embrace all the renewable energy opportunities right throughout our nation into the future.

It's important for our economic future. It's important in addressing climate change. It's very important in addressing our power bills as well. There are a whole range of initiatives, and they are ones that those of us in the Albanese Labor government are incredibly proud of—all the action we are taking to date.

Helen Haines (Indi, Independent) Share this | Link to this | Hansard source

The calls for households to move away from fossil fuels and towards electrification are just becoming louder. Many in the community are, in fact, way in front of government in pushing for this. I recently joined over 130 people in my electorate at the Renewable Electrification Community Forum, hosted by Wangaratta Landcare and Sustainability, led by Russell Sully and John Naylor. We heard speakers from Rewiring Australia, social enterprise energy retailer Indigo Power, and solar specialist Solargain. Attendees used their precious Sunday morning to hear the case for home electrification, and this case is strong.

Just this week the Grattan Institute released a report saying, if we have any hope of getting to net zero carbon emissions by 2050, then Australian households must get off gas and electrify. This might seem like an impossible task that lies ahead, but it's not. It's a big task, but we have solutions in front of us. This requires electric cooktops, home heaters, water heaters and cars, and installing batteries in our homes to store the electricity these appliances need to run. This must happen in houses, apartments and businesses. It must happen for landlords and renters alike. It must happen in the cities, and it must happen in the regions, and it must enable low-income people to share in the benefits of this transition.

And there are multiple benefits to home electrification. Firstly, importantly, in this cost-of-living crisis that we face, this is cheaper. An analysis by energy entrepreneur Dr Saul Griffith shows that a fully electrified household would save $5,000 a year in petrol costs and power bills.

Electrification is also healthier. We know that using gas releases pollutants that cause asthma and other problems, but, with high upfront costs, we cannot expect individuals to electrify on their own. The Grattan Institute says that more than half of Australian households face significant barriers to upgrade to electric; therefore, the government can and must do more to support households to do this.

I'm pleased that the government is committing $1 billion towards the Household Energy Upgrades Fund to provide households with low-cost loans for solar panels, modern appliances and double glazing, and I have called for this for a long time. But since this announcement we have seen scared detail on the eligibility for these low-interest loans and the how and when that they can be accessed. We need more detail; we need it soon. Any incentives to help homes electrify must be prioritised for low-income households so that our transition towards renewable energy doesn't leave the most vulnerable people behind.

When we talk about household electrification, home batteries are also an integral part to this. Current market and government expectations and aspirations are that the renewable energy share of our national electricity grid will reach 82 per cent by 2030, but, according to Green Energy Markets, this figure assumes that the cost of household batteries will be subsidised this decade, and the case for government support is clear. Since being elected, I have twice introduced my Cheaper Home Batteries Bill. This bill offers a simple solution to help homeowners purchase a home battery. By including home batteries under the Small-scale Renewable Energy Scheme, my bill could drive down a battery's cost by around $3,000. The scheme has worked for solar. It's driven the cost of solar panels down by about 80 per cent over the past 10 years, and we now have one of the highest rates of household solar in the world. We could do the same for the home batteries.

Like electrification of appliances, a home battery can improve household savings and reduce our national emissions. They provide a reliable energy source during times of emergencies like bushfires and storms when powerlines go down. We know about this in our electorate of Indi. Places like Corryong and the alpine areas know too well the experience of blackouts during crucial emergencies. We know that if households were given some help to buy a battery, the uptake would improve. Local councils like Indigo Shire in my electorate were part of the Project EDGE, which provided financial support for about 130 households in places like Beechworth, Worrigee and Yackandandah to take up batteries. We know that with a government nudge, with significant support—more than a nudge, a big nudge, actually—everyday Australians will want to engage with home electrification. Let's get on with the job.

Julian Hill (Bruce, Australian Labor Party) Share this | Link to this | Hansard source

MPIs are my second favourite thing, after the Fed Chamber, where good speeches go to die, but it is terrific to have a sensible topic for debate for once on the MPI. It is important that Australia accelerates the transition away from fossil fuels by electrifying people's houses with cheaper renewable energy. It is so important. It's obvious that it's the teals and the crossbench bringing this debate, not the opposition, because it is a sensible topic for the parliament to spend an hour debating. Renewable energy will lead to lower pollution and lower emissions. It's the cheapest form of new energy, unlike Mr Nuclear Sheen over there—

Sharon Claydon (Newcastle, Australian Labor Party) Share this | Link to this | Hansard source

I am sorry, member for Bruce. If you're going to refer to a member, you need to use their proper title.

Julian Hill (Bruce, Australian Labor Party) Share this | Link to this | Hansard source

The member for Fairfax—he's not the suppository of all wisdom, to quote George Bush. But it is so important for Australia's economic future. This is the bit that they don't get. Australia has the best renewable energy resources of any OECD country. We can reclaim the advantage in cheap, ubiquitous power that we had through the 1960s and seventies and onshore manufacturing, creating tens of thousands of jobs, many of them in regional areas, if only this entire parliament—not just this side of the House and the people over there but all of the parliament—would embrace a renewable and clean energy future. The crossbench and the teals get it. They get it on renewable energy. Even the Greens political party, I'll admit, so far get it, and, rarely, their actions in the parliament actually match their words. Unlike, of course, with affordable housing, where they see one thing in their electorate and then do another up here.

When push comes to shove, the Greens political party always vote against affordable housing, but on renewable energy they've done the right thing so far this term.

There is one group in parliament, of course, that doesn't get it. That's the opposition—the Liberals and the Nationals—who are stuck in the Dark Ages after the decade of delay and division and dysfunction. They're still arguing over whether climate change is real, instead of seizing those opportunities—lower pollution, cheapest form of new power and jobs, jobs and jobs. Even from a national security point of view, every major military of every developed country has climate change risk near the top of their risk profile. Those geniuses over there say they're serious about national security. If they were, they would be serious about action on climate change. They're two sides of the same coin.

But words don't convince them. Reason doesn't convince them. Evidence doesn't convince them. Let me put it in political terms which they might understand. The only reason that these fine women, the teals, are sitting over here, occupying these seats is the previous government's inaction on climate change. I'll illustrate it. Remember Josh Frydenberg? Remember this other former future prime minister, Tim Wilson? We had Dave Sharma; remember him? He's a goner.

Sharon Claydon (Newcastle, Australian Labor Party) Share this | Link to this | Hansard source

Member for Bruce, there is a fine distinction between legitimate visual aids to support a speech and the use of props for dramatic effect.

Julian Hill (Bruce, Australian Labor Party) Share this | Link to this | Hansard source

I've only got three left. I've got Celia Hammond and Trent Zimmerman—and Jason Falinski, who might actually be the new president of the New South Wales Liberal Party. He got beaten too—didn't he?—because of the former government. I could table them. I seek leave to table the photos of the former future prime ministers.

Sharon Claydon (Newcastle, Australian Labor Party) Share this | Link to this | Hansard source

Is leave granted?

Ted O'Brien (Fairfax, Liberal Party, Shadow Minister for Climate Change and Energy) Share this | Link to this | Hansard source

Not only is leave not granted, but I point out, Deputy Speaker, that he is defying your instruction.

Sharon Claydon (Newcastle, Australian Labor Party) Share this | Link to this | Hansard source

I think I can think for myself, thank you. Leave is not granted, and I ask the member for Bruce to keep the photographs down.

Julian Hill (Bruce, Australian Labor Party) Share this | Link to this | Hansard source

They're down there. I'll keep them.

Ted O'Brien (Fairfax, Liberal Party, Shadow Minister for Climate Change and Energy) Share this | Link to this | Hansard source

Put them back on your wall.

Julian Hill (Bruce, Australian Labor Party) Share this | Link to this | Hansard source

I'll send them to you. Words don't convince them. They don't even want to see the pictures. But the major reason that the member for Wentworth can bring this motion is a decade of inaction on climate change—actually, maybe I misled the House. It's probably the second major reason. I'd say the member for Cook is the major reason. But certainly their inaction on climate change is the—

Honourable members interjecting—

Let's never overstate our own part in these things! They had 22 failed energy policies, and they couldn't implement one of them. This government is acting. The No. 1 criterion to get power prices down is certainty for new investment. That is what they failed to provide for a decade. We're rewiring the nation. We're fixing the grid to create the conditions for renewable energy to move around the country. Remember the geniuses over there and the Snowy Hydro—the new battery? Except they forgot to fix the grid. It's like getting a new battery pack for your phone without the cable to plug into the network.

Zali Steggall (Warringah, Independent) Share this | Link to this | Hansard source

I rise to speak about the urgent need for household electrification. The warnings are clear. Global warming is still accelerating and we are due to tip over to 1.5 degrees as early as 2027, so we must accelerate ambition. That is why I've called on the Albanese government to be more ambitious with its emissions targets and pushed it to commit to 75 per cent emissions reduction by 2035 as our next NDC commitment under the Paris Agreement.

Reducing our emissions requires the biggest collaborative effort by every sector of society. Forty-two per cent of our emissions comes from households. Electrification of households and cars is key to reducing our emissions and will have the biggest impact on climate this decade. During a cost-of-living crisis it will also significantly lower household costs.

Electrification of homes means that when a household gas appliance such as gas space heating, gas hot water heating or a gas cooktop needs replacing, it enables and encourages replacing it with an electric alternative. It won't happen overnight. However, the government urgently needs to lay out a plan and give Australian households the confidence to get started and the assistance they need. In our homes, gas heating is the No. 1 guzzler of energy, accounting for 40 per cent of our home energy. Swapping gas heating for a split cycle air-conditioning system will save Australians about $400 a year, and it's about four times more energy efficient than gas.

If we combine getting off gas with sealing gaps and insulating walls and ceilings, these three things will reduce household energy use by 30 to 40 per cent. Over 80 per cent of the measures in the USA government's Inflation Reduction Act went to supporting household electrification and will result in reductions in emissions and huge cost-of-living savings. The USA government recognises this, and the Albanese government needs to as well.

There are a number of ways in which this can be done. The Australian government should also come to the party with, for example, tax breaks and incentives for landlords so that people who are renting or living in strata accommodation can also benefit through this transition off gas. Also we need to ensure that we have supply and choice, so I call on manufacturers of gas machines to make pledges to phase out new models of gas appliances and prioritise expanding electric ranges. We have seen this in the car industry with pledges around phasing out ICE model vehicles. We need to see it in cooktops and in all those appliances.

In Australia we have the biggest uptake of rooftop solar in the world. Almost one in three homes has rooftop solar. That's 3.2 million households. The uptake of household batteries, however—whilst increasing; it's up by 55 per cent on last year—is still currently only one battery for every seven solar systems installed. This uptake in installing household batteries has been spurred by surging power prices with Australians turning to solar and batteries to ease their dependence on the grid. But the obvious barrier is cost. A 10-kilowatt battery is around $10,000. So Australia needs to get an ambitious renewable energy storage target to drive that small-scale battery and complement the capacity mechanism that was announced by the government. We could also look to support small-scale technology certificates. If one in five households that already have rooftop solar could also get batteries, we could already achieve 30 per cent of our storage needs.

Additionally, we need to look at heat pumps, community battery projects and vehicle-to-grid technology. Heat pump hot water systems work with rooftop solar to capture excess solar energy and turn it into hot water. It's like a home battery, and it stores that excess energy for later use. In terms of community batteries, the government has committed to some 400 batteries, and we need to see that expand. Vehicle-to-grid technology is another energy storage option available to some electric vehicle owners. This technology allows an EV to be used to power your home. Another area which we don't talk about enough but which is incredibly important is our green building standards. We are behind. That urgently needs to be reviewed and improved. We need to ensure we have incentives so that any homes built from now on are energy efficient and effective and also climate resilient.

Libby Coker (Corangamite, Australian Labor Party) Share this | Link to this | Hansard source

I begin by thanking the member for Wentworth for putting forward this matter of public importance. She understands the importance of electrifying our nation, as does the Albanese government. For far too long, Australia has lagged behind the rest of the world in seizing the economic and environmental opportunities that come with cleaner and more affordable energy. In the global race for new energy jobs and investments, we have found ourselves falling behind after a decade of policy drift and funding neglect. But no more! We now have a government that wants to seize the opportunity of renewable energy.

On this side of the House, we recognise that much of the potential of renewable energy exists in regions like my electorate of Corangamite, where there is much open space and where there is capacity for wind, hydro, solar and hydrogen. Corangamite, which includes the Surf Coast, Golden Plains, the Bellarine Peninsula and parts of Geelong, has a strong manufacturing history. When you add a dynamic university like Deakin, a TAFE like the Gordon and industry that is already on the renewables journey, we are well placed for rapid success. And there are many other regions across Australia just like mine. It is government's job to unlock these opportunities and create a foundation for our regions to embrace renewables.

That's why the Albanese government is working towards low emissions and a renewable future.

This is what the Albanese government is doing. Alongside targeted household rebates to ease energy bills, our 2023-24 budget has a comprehensive plan to ensure households and communities can make the most of the savings that come with smarter energy use. Through a $1.6 billion energy savings plan, households and businesses will have access to energy upgrades that will improve their energy usage and help them save on costs.

We will also rewire our national grid and invest $1.3 billion to establish the Household Energy Upgrades Fund. This fund will provide $1 billion to the Clean Energy Finance Corporation, allowing them to partner with banks and lenders to offer financial options for household energy upgrades. From installing solar panels to modernising appliances, we will empower more than 110,000 households to lower their bills and make their homes more energy efficient.

But our vision goes beyond energy savings. We are determined to become a world-leading producer of green hydrogen, which is a renewable resource with incredible potential. Renewable hydrogen is crucial to manufacturing green metals and other products needed to transition to net zero by 2050. We're investing $2 billion in Hydrogen Headstart to provide vital financial support for large-scale renewable hydrogen projects through a competitive production contract process. These projects will see Australia achieve a gigawatt of capacity by 2030, creating more jobs now, more jobs for the future, and a restored national focus on new energy sources.

We will also provide funding of $38.2 million for a guarantee of origin scheme certifying renewable energy and ensuring the tracking and verification of emissions for clean energy products. This funding is critical to enhancing our reputation as an attractive investment destination, accelerating the growth of our hydrogen energy industry and opening doors to future markets.

But we won't stop there. The government will provide an extra $5.6 million to leverage our nation's strengths in renewable energy, including critical minerals and our highly skilled workforce. By capitalising on these advantages, we will accelerate the development of our clean energy industries.

We have great potential. Our nation is ready for the task and so is our government. With the support of the community and industry, we will become a visionary renewable powerhouse.

Monique Ryan (Kooyong, Independent) Share this | Link to this | Hansard source

Australia needs to get off natural gas if it is to have any hope of achieving net zero carbon emissions by 2050. Household gas amounts to 17 per cent of all of our emissions in Australia. As a paediatric neurologist I committed my professional life to looking after sick kids. That was a job I loved, and I'm very lucky that in this place I have the chance to still uphold those core principles. Getting off household gas will significantly improve health outcomes for all of us, but it will particularly improve health outcomes for children.

When gas is burned it releases carbon monoxide, nitrogen dioxide, formaldehyde and ultrafine particulates. These substances are harmful. One study estimated that exposure to gas stove emissions was responsible for as much as 12 per cent of childhood asthma in Australia. Another found that exposure to indoor gas appliances in early infancy was associated with lower scores on general cognitive, memory, verbal and executive function testing in four-year-old children. The reality is that the faster we electrify our homes, the healthier our children will be. We have to do that, though, in a way that will raise all boats. We have to help those people who might well struggle with the cost of transitioning to electric appliances, heat pumps, home batteries, solar and the cheaper forms of active transport. We all accept that electrifying Australia will be a challenge, but we know that the most vulnerable will benefit most from cheaper and cleaner forms of electrification.

This challenge is one which, like other significant challenges we face to overcome climate change—transitioning our industries away from fossil fuels, upgrading the transmission grid and ending new coal and gas projects—comes with exciting opportunities.

Electrification is an intelligent, targeted way to tackle inflation and to reduce our cost of living. Australia is blessed with the greatest renewable energy resources in the world, and we are brave early adopters. The 3.3 million homes with home solar will attest to that. That's almost one-third of Australian homes. The more electric appliances that we have, the more rooftop solar that we can tap into and the cheaper our power bills. Estimated savings per household from electrification of our transport and of our homes is $5,400 a year per household. Spending less to power our homes will help bring down inflation.

The federal government recognised that with this years meet budget. It earmarked $1.3 billion for home energy efficiency retrofits and for electrification. But we've not yet received any information regarding the government's plan for low-cost loans and for subsidies. We need national leadership to help lower our power bills, save our climate and protect our children's health. With all-electric homes being cheaper to run, better for our health and crucial for driving down emissions, supporting households to transition away from fossil fuel appliances has to be a climate, cost-of-living and health policy priority, but doing so is a complex task. Households will need support to help them overcome the many financial, regulatory and informational barriers to electrification, and that particularly applies to those who are renting and those on lower incomes. We need our state and territory governments to set end dates for the use of gas and for all governments to launch campaigns to support and encourage people in switching their homes from gas to all-electric.

I was proud to host the second Electrify Parliament event alongside Allegra Spender MP and Senator David Pocock this morning. Their election, alongside the election of other independents in 2022, demonstrated that the Australian public now expects the parliament to act decisively on climate change not just to save our planet but to usher in a cleaner, greener, cheaper economy. This morning's event was one which saw Liberal, Labor, Greens and Independent MPs unite with a common aim to electrify Australian households, and I look forward to working with everyone in this building to accelerate electrification of our homes. I thank the member for Wentworth for introducing this motion and highlighting the goodwill that is behind this most important transformation.

Marion Scrymgour (Lingiari, Australian Labor Party) Share this | Link to this | Hansard source

I thank the member for Wentworth for this MPI topic today. It is one that is deeply important in my electorate of Lingiari. My electorate of Lingiari is certainly vastly different from that of Wentworth. In truth, we could not represent more different electorates, but what we do share is a commitment to renewable energy and to supporting households with their energy needs. It is an issue that is very important to the Albanese-Labor government. We all know that we needed to transition our energy market to renewables, and we knew that households are absolutely essential in this.

Our Labor government is committed to household solar, and you can see this in many facets of our government policy. We have the Rewiring the Nation agenda, We have the Capacity Investment Scheme. We have $1 billion for the Clean Energy Finance Corporation to turbocharge options for household energy upgrades. We have $300 million for social housing upgrades. We have $310 million for our Small Business Energy Incentive, something which will encourage our small businesses to save energy and to save on energy bills. We also have $100 million for the Community Energy Upgrades Fund, which will boost local councils and the work that they do on community energy. I know from talking to a lot of the councils in my electorate that they are certainly looking forward to accessing that.

The answer to today's MPI—what we are doing to move renewables—is simple: we are doing a lot. The $1.3 billion to establish the Household Energy Upgrades Fund is of particular note.

This fund will help more than 110,000 households electrify and lower their energy costs. I am sure the member for Wentworth will agree that reshaping our country's reliance on fossil fuels is a mammoth effort. For hundreds of years Australia's economy, and indeed the global economy, has been shaped by and built on fossil fuels. We know that this needs to change. The future we are passing onto the next generations is at stake. But more importantly, we have the opportunity to build a sustainable, clean, green economy. Labor understands this. We aren't interested in virtue signalling, like some of the other parties in this parliament. We are interested in the hard, painstaking work of reforming our economy.

For the Northern Territory, and Lingiari in particular, we are currently embarking on a renewable energy transition. This makes sense; we have all of the prerequisites needed to do this. We have an abundance of sun, a large mass and a smart bunch of Territorians ready to work in the renewable energy sector. We need to seize the opportunity ahead of us. Indeed, in Lingiari we are working hard to do so.

It is particularly important to look at our bush communities when looking at renewable energy and household energy security. Many bush households rely on diesel generators, which are both costly and hard to maintain. Our houses out bush need rooftop solar, more so than anywhere around the country. When you're along a dirt road, five hours away from a major town, reliable energy is much more than just comfort. In the steaming summers and brisk winters, reliable energy is a matter of life and death.

I see far too many of my mob out bush without access to reliable, renewable energy. This needs to change, and it will change. My office has been speaking with Tangentyere housing in Central Australia about an ambitious pilot program to get solar on town camps, and I know that this is also happening in other places to across the nation. But we can only do this because of the support and the commitment of the federal government. For a long time we had a federal government that was not interested in the hard, painstaking work of reforming our energy system. But not anymore. The Albanese Labor government is ready to seize the opportunity ahead for all of us.

Dai Le (Fowler, Independent) Share this | Link to this | Hansard source

Energy is all around us from the moment we're born, in the clothes we wear and the gadgets we use. Unlike money, energy is a fundamental part of the universe. Each of us has an energy footprint. In the developed world we each use around 25 kilowatt hours of electricity per day. This is the equivalent of charging your phone more than 1,000 times a day.

But Australia is still the lucky country when it comes to energy. Not only do we have resources such as coal and gas, but we also have unlimited sunlight. The amount of sun that falls onto our roofs is one of the highest in the world. One only has to fly across Western Sydney and my electorate of Fowler to see how popular this technology is in Fairfield, Liverpool, Cabramatta, Edensor Park and other suburbs. With more than 3.4 million solar systems, Australians are embracing renewable energy because it means they save money on their energy bills. They can also contribute to creating a cleaner energy environment.

But there are two obstacles we need to tackle when it comes to electrifying our homes with renewables. The first issue is that solar, however successful it has been, has not helped those who are not fortunate enough to own their homes. Furthermore, rental units with solar are still a rarity. We must ensure we are not leaving people behind as the momentum for an electrified world increases. Therefore, it's critical in our debate over the affordability of owning a home to not forget the renters and those socially and economically disadvantaged.

The second issue is that the 3.4 million solar systems generate a lot of solar electricity in the middle of the day, but there's no infrastructure at the moment to store this energy, despite us having experienced a solar boom for close to 20 years. The government has given a rebate for solar, financed by all of us who pay for electricity, but somehow we have neglected to create the appropriate channels to use it more efficiently.

We now have the ridiculous situation where solar systems are being switched off remotely by energy retailers and are seeing valuable renewable energy evaporate, instead of being used effectively. Surely this has to change.

The predicament we are now in, with people facing higher energy bills and no solar storage technology, is due to past government's inaction and failure to develop policies that enable collaborations and solutions to deliver the framework and an electricity infrastructure program for a cleaner energy environment, such as batteries to store the solar energy generated in the middle of the day to be used later on. While the government announced the community battery program recently, this is just a drop in the ocean, because we need a large-scale program to be more effective.

Surely we can look at what other parts of the world are doing in this space when we know that we need to develop such infrastructure. How can we electrify our homes using the maximum amount of solar energy? In this morning's forum on electrifying parliament hosted by my crossbench colleagues the member for Wentworth, the member for Kooyong and Senator Pocock—and thank you to the member for Wentworth for having this MPI—we heard that landlords could be incentivised to install solar on developments, including apartments, which can ultimately reduce energy costs for renters and ease the cost-of-living pressures. The technology is there to put solar on these developments, and renters can get a share of solar on their buildings.

High-rises can have solar walls that generate energy. We can also send solar power from our roofs into our electric hot water heaters and use this just like a battery to absorb extra solar. We must find pathways and incentives to make solar available for renters and unit blocks as they have missed out on renewable benefits for decades. We can assist in introducing heat pumps to generate hot water—this is very energy efficient—and remove fossil fuel driven hot water generators from our homes. The member for Indi and the member for Warringah also mentioned this technology.

We should also revisit the solar rebate scheme because, since the introduction of this scheme, solar panel prices have halved, so maybe it is time to support more community solar and batteries so whole communities can have lower electricity costs.

Overall, in the push for everything to be electrified, the government needs to bring the different stakeholders together and develop a strategy to enable ordinary Australians to benefit from this transition, especially families in south-west and Western Sydney, like those in my electorate of Fowler. Ultimately, it is our responsibility to ensure that all policies are equitable and inclusive for every single community in Australia to reap the benefits of a cleaner energy world.

Cassandra Fernando (Holt, Australian Labor Party) Share this | Link to this | Hansard source

I am pleased to provide my contribution on today's matter of public importance. It is an issue that the member for Wentworth and the Australian public are deeply concerned about. The Albanese Labor government has been firm since day 1: renewable energy is the most effective form of energy. This insight guides our investment in crucial initiatives like Rewiring the Nation and the Capacity Investment Scheme, which ensures the future security of our grid. Moreover, it also means supporting households in overcoming the most significant barrier to household electrification, the upfront costs.

To be clear, we're not here to ban or mandate; we are here to support and incentivise. Our commitment expands beyond households. It encompasses small businesses and even community facilities. The recent budget reflects our dedication by delivering substantial investments in energy efficiency. These measures are designed to alleviate the financial pressures on Australian families and contribute to reducing emissions. We have allocated $1 billion to the Clean Energy Finance Corporation to bolster financing options for household energy upgrades. We are actively partnering with banks and other lenders to modernise homes with battery-ready solar PV and contemporary appliances. These efforts will help over 110,000 households reduce their energy bills. We have committed $300 million to support upgrades to social housing in collaboration with states and territories. Furthermore, we have earmarked $310 million for the small business energy incentive. This will provide businesses with an additional 20 per cent deduction on expenditure that supports electrification and more efficient use of energy.

Our goal is to empower Australians and enable them to make the choices that suit their homes and businesses to reduce energy bills. We aspire to give all Australians the opportunity to go electric if they choose to do so. The Albanese Labor government is committed to driving down household and business energy costs and making homes and businesses cheaper to run. By improving energy efficiency, we can ease the cost of living and take the pressure off Australians. We know that Australia has slipped down to 58 out of 63 countries on energy use per capita due to the decade of inaction. However, we know that upgrading an average house from a one-star rating to a three-star rating can reduce energy consumption by 30 per cent, leading to lower energy bills. That's why the Albanese Labor government is helping households, including social housing and businesses, to access energy savings and upgrade through the energy savings package.

Let me also address the rumours about banning gas cooktops. The Albanese Labor government will not be banning gas appliances in people's homes. We know many people love cooking and love cooking on their gas cooktops. We are not forcing anyone to change, but we encourage them to consider induction, which is cheaper to run, cleaner and safer. The opposition's scare tactics are a weak attempt to compensate for their lack of policy. They are importing a culture war from the United States. This is just another hollow scare campaign from the feeble opposition.

The Small Business Energy Incentive will help up to 3.8 million small businesses save energy and reduce their energy bills. The bonus tax deduction will encourage businesses to invest in electrifying their heating and cooling systems, upgrading to more efficient appliances and installing batteries and heat lamps. We are also partnering with local governments to deliver energy upgrades and build savings for community facilities like local pools, sporting clubs and community centres. The Community Energy Upgrades Fund will also co-fund upgrades with local councils and unlock energy saving upgrades for community facilities around the country.

Our work here is not done, but we are firmly committed to this vision, a vision rooted in giving all Australians tools, information and access to cheaper— (Time expired)

Kylea Tink (North Sydney, Independent) Share this | Link to this | Hansard source

I just want to take a moment to thank all the members that have participated in this debate. Unlike our esteemed member from Bruce who says that MPI debates are where great speeches go to die, I think it is this time in the parliament when the community wants to see us have real and sincere conversations. Before I dive into what I want to say, I want to make a few comments in response to esteemed members who have spoken today.

Firstly, from the member for Richmond we heard a lot of information about everything the Albanese Labor government is currently doing, yet what really struck me was one line when she made the point that we are largely here because we have had 10 years of inaction due to the opposition. She also made the point that the opposition are bound to fail because they are advocating for nuclear. Her argument against nuclear was that it would cost $5 billion each, and we would need $8 billion to build the number of nuclear reactors we need. I am very sorry to inform the member for Richmond that that money required, the $40 billion, is infinitely within reach as this current government has continued to subsidise fossil fuels to the value of $41 billion. So whether or not you agree with the opposition's take on nuclear energy, this should not be a discussion about what money is being made available where, because money is already there in our federal budget.

Then the member for Bruce paid us—me and my colleagues on the crossbench—the compliment of saying we were here because of inaction from prior governments. I say to the member for Bruce that that may indeed be one of the reasons we are here, but it is also because Australians were tired of the legislative gridlock we found ourselves in in this place.

I would argue that a government is only as strong as the ambition it sets and the change that it drives, and in this context I would warn our current government that its ambition may not be strong enough nor its pace fast enough.

The member for Corangamite then did a great job of talking about how government is committed to unlock opportunities, and I thank her for taking us through the comprehensive plan of how the government is going to make the most of this. But I make the point that the numbers we heard were numbers like $1.6 billion, $1.3 billion, $2 billion, $38.2 million and $100 million—which, all combined, still do not add up to the $41 billion dollars currently being provided for fossil fuel subsidies. The member for Lingiari again talked about some fantastic numbers for social housing and community, but again it was in the hundreds of millions of dollars as opposed to the billions of dollars being invested in fossil fuels. And the member from Holt has just finished talking us through how the government will not ban or mandate a move away from a gas, yet I have worked in an environment where, had we not banned or mandated a move away from tobacco, we would still have hundreds of thousands of Australians dying every year from lung cancer. You can indeed mandate things when it is in the best interests of your community and your society.

From my perspective, when I was elected a year ago one of my pledges was to get North Sydney to net zero by 2035, and I'm incredibly grateful to the people I get to work with—both the experts and my community members who are working to make this happen. They do it by nudging the 80,000 homeowners, landlords, families and businesses in our electorate to make a set of decisions over the next 12 years to get them to choose home appliances that bring them closer to an electrified future. The reality is that capital, government, community and innovators must come together to support individuals to achieve positive climate and social outcomes. For anyone interested in learning more about what is being done in North Sydney, I encourage you to visit my website, kyleatink.com.au, as my team has literally just launched a web resource for every person who lives in my electorate to help them find the subsidies, the rebates and the channels to enable them to electrify faster.

What is clear is that for us to move our country forward we ultimately need to break not only our society's reliance on gas but also our government's addiction to gas. In our recent budget we saw the government attempt to sell us on modest changes to the petroleum resource rent tax, but what they actually showed us is that, ultimately, the government will make more money off those people who are addicted to tobacco than they will of those who are permanently extracting our limited gas resources. It is time we moved beyond platitudes and million-dollar headlines to really be the change we need to see.

Sharon Claydon (Newcastle, Australian Labor Party) Share this | Link to this | Hansard source

The discussion is now concluded.