Review of the Clean Energy Future Household Assistance Package
On 10 July 2011, the Australian Government announced its climate change plan, Securing a Clean Energy Future, which included the introduction of a carbon price to support a reduction in Australia’s greenhouse gas emissions and encourage investment in low emission technologies.
The carbon price commenced on 1 July 2012 with a fixed price starting at $23 a tonne in 2012-13 and increasing to $24.15 in 2013-14 and $25.40 in 2014-15. From 2015-16, the carbon price will be determined by the market through an emissions trading scheme.
To assist low and middle income households to adjust to the impact of the carbon price, the Household Assistance Package began in May 2012 with payments to pensioners, allowees and family payments recipients, followed by tax cuts from 1 July 2012.
The Government committed that the Deputy Prime Minister and the Minister for Families, Community Services and Indigenous Affairs would review the adequacy of the Household Assistance Package annually in the Budget context over the fixed price period. This is the first review.