Penny Wong (SA, Australian Labor Party, Minister for Climate Change and Water) Share this | Hansard source

The adjustment to the household package was reflective of the lower than expected carbon price. That change resulted from a change in parameters in relation to MYEFO, and accordingly the dollar compensation which had previously been calculated was obviously calculated in relation to a higher carbon price; I think the change was from $29 to $26 for the first year of a floating price under the scheme. Accordingly, the government agreed that we would adjust the household assistance to reflect the lower than previously expected impact on CPI and the lower than previously expected impact on household expenses.

The government is maintaining its commitment, and we have made that quite clear publicly. It has maintained its commitment to 120 per cent compensation for the overall costs of the scheme for low income earners and will continue to make a significant contribution to middle-income families. In relation to the other expenditure items under the scheme—I am not sure which ones the senator is referring to—obviously there are a significant number of programs where assistance is provided in the form of permits, so you would not adjust that. You would cost it differently in the sense that a permit cost post MYEFO might be different to the projected cost pre MYEFO, but, for example, for the electricity sector and the emissions-intensive trade-exposed programs, they are provided in the form of permits. So an adjustment to the carbon price projection is not going to affect the number of permits. It may reflect the costed value in terms of the forward projections.