I welcome the ACCC’s latest carbon monitoring report which shows that significant cost savings from the removal of the carbon tax are being passed on to consumers.
The report covers the March 2015 quarter in the electricity, natural gas, synthetic greenhouse gas, landfill, construction material, manufacturing and domestic passenger air transport services industries.
It shows that all entities in the electricity and natural gas sectors apart from one small entity have passed through all savings.
I am pleased there is no indication that construction material manufacturers are continuing to charge a carbon tax component in their prices. The ACCC does not consider that any of these entities’ representations or conduct could be held to be misleading.
The ACCC has completed its assessment of the representations made by domestic airlines about the effect of the carbon tax repeal on their air fares and does not propose any further action.
The consumer watchdog will continue to engage with landfill operators to confirm how they will use the funds they have collected for future carbon tax liabilities given the carbon tax has been repealed.
I agree with the ACCC that the approach to future carbon tax liabilities in the landfill sector as set out in the Department of the Environment’s draft framework is appropriate.
Information will continue to be sought by the ACCC from some entities in the synthetic greenhouse gas sector to confirm the effect of the carbon tax repeal on their prices.
The Abbott Government gave the ACCC powers and resources to take action where businesses are misleading their customers about the impact of the carbon tax repeal.
The report confirms that the Government’s carbon tax repeal legislation, which includes mechanisms to ensure compliance, is working and saving households money.
In particular, the price exploitation provisions with high penalties for non-compliance, combined with transparency requirements to substantiate savings and provide statements to customers, led to the level of compliance observed within the electricity and gas sectors. I am pleased that because of the high level of compliance, no enforcement action has had to be taken in the March 2015 quarter.
A copy of the report is available on the ACCC’s website.
The last report regarding the ACCC’s operations in relation to the carbon tax price reduction obligation is required to be provided to me by 28 July 2015.
The Abbott Government is committed to lower taxes for households and business, and the repeal of the carbon tax is one of the ways we are achieving this.
Average price change since March/April 2014 for residential electricity standing offers and based on state-specific consumption levels
|Overall price change From March/April 14 to Jan/Feb 15||-6.00%||-5.60%||-0.40%||2.90%||0.50%||-7.80%||-1.60%||-4.10%|
|Carbon tax cost savings as % of March/April 14 prices||-11.10%||-6.90%||-5.10%||-8.10%||-6%||-7.90%||-7%||-8.40%|
|$ carbon tax cost savings since March/April 2014||$185||$134||$103||$145||$143||$198||$112||$135|