Mr. Hatton questions the Treasurer on the repeal of the carbon tax and the plan to pass benefits to consumers. The Treasurer outlines the government's actions to reimburse carbon tax collections on electricity, water, and public transport.

AnsweredQoN 561Legislative Assembly
Asked
14 August 2014
Portfolio
Treasurer

QuestionView source ↗

CARBON TAX
LEGISLATION — REPEAL
561. Mr C.D. HATTON to the
Treasurer:
I firstly acknowledge the wonderful staff and students from a
very good school, Falcon Primary School, here in the chamber today. Falcon
Primary School is in the Deputy Premier's electorate of Dawesville.
Following the article in today's West Australian , could the Treasurer please update the house on
what has been done about the repeal of the carbon tax and passing those
benefits on to consumers?

AnswerView source ↗

I thank the member; it is a very good question. It has been
the position of this government all along to pass on the benefits if the carbon
tax were to be repealed. We fought strongly against the imposition of the
carbon tax and we argued for its repeal. We indicated all along that if the tax
were taken off, and it has been, we would reimburse all collections this year—that
is, the state of Western Australia would ensure —
Dr A.D. Buti interjected.
The SPEAKER :
Member for Armadale, I call you to order for the first time.
Dr M.D. NAHAN : The
state of Western Australia will reimburse all collections of carbon tax,
whether it be on electricity or identified in public transport and water. We
have already put in place —
Dr A.D. Buti interjected.
The SPEAKER :
Member for Armadale, I call you to order for the second time.
Dr M.D. NAHAN : We
have already put in place and announced that, as from 1 September this year,
the carbon tax will no longer be levied on electricity bills and that all
collections from 1 July 2014 will be reimbursed. The private sector gas
providers are mainly Kleenheat and Alinta. Kleenheat is already in the process
of stopping collection and reimbursing, and Alinta will do so shortly. We did
that in the speediest practicable manner. Water and public transport are a bit
more difficult. The major source of carbon tax for Water Corporation is the
electricity it consumes; it has to go out and measure it. For instance, the
largest growth in electricity for Water Corp has been in the desalination
plants, and that is all renewable. But it is out there actively calculating how
much it amounts to—and I might add that it is also a major buyer of
electricity and has a different mixture; some is gas, some is coal and some are
renewables. By no later than the time of the midyear review, it will ascertain
how much it is and put in a plan to reimburse it. Public transport is a bit
more difficult. We calculate that the carbon tax is about 1.5 per cent of
overall Public Transport Authority costs, and there are some complications in
the fact that people buy tickets. They might buy one or two tickets a year;
they might have consumed that service, and it is hard to identify and therefore
reimburse it. We also have a policy of implementing only 10 per cent increments
in price. There are complications. That is life. But, again, the Public
Transport Authority will, by the time of the midyear review, identify how much
the figure is and reimburse it to the community. The policy is quite clear-cut.
We resisted the imposition of the carbon tax right from the start and supported
its repeal—unlike the mob on the other side. We are going to give all
the money back to the community. By the end of the year, the community will not
have paid carbon tax to the state entities in 2014–15.

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