Over half the money raised from the carbon price is being used to assist households.
From small business to large industry, businesses are being assisted in transitioning to a clean energy future. About 40 per cent of money raised from the carbon price is helping businesses and supporting jobs.
Q. How can builders benefit from gaining the knowledge and skills they need to construct homes that are more energy efficient?
The demand for houses that are energy efficient is on the rise as Australian homeowners begin to realise the benefits. Equipping builders with the skills they need to produce cutting-edge constructions that lead the way in energy efficiency will help their businesses thrive as this steadily growing market continues to expand.
Q. Want to know more about the Carbon Farming Initiative?
Strong jobs growth as pollution is cut
To support Australian businesses to make the transition to a clean energy future, the Government has designed a number of assistance measures for the business community, from large industrial producers to small businesses.
Assistance measures target emissions-intensive, trade-exposed industries, other areas of manufacturing, food processing, foundries and small business.
The Jobs and Competitiveness Program ensures that businesses that produce a lot of pollution and compete in international markets remain competitive, while still retaining strong incentives to reduce carbon pollution. Almost all emissions-intensive and trade-exposed activities are in the manufacturing sector. The Program provides support to activities that generate over 80 per cent of emissions within the manufacturing sector.
The food processing, metal forging and foundry industries are also assisted to support jobs in these parts of manufacturing. More general assistance for small businesses and manufacturing industries targets improvements in energy efficiency.
All of these measures have been designed to ensure that Australia continues to experience strong jobs growth while at the same time providing incentives to cut pollution in our economy.
Jobs in a Clean Energy Future
Moving to a clean energy future is providing new economic opportunities for Australian workers.
Opportunities are opening up in existing businesses as they move to operating in a clean energy future. Many businesses are investing in new technology to generate less pollution and become more efficient.
Jobs are also being created in new clean industries such as renewable energy generation, carbon farming and sustainable design, to name just a few.
Treasury modelling estimates that under a carbon price:
- National employment is projected to increase by 1.6 million jobs by 2020.
- Average incomes are expected to increase by about 16 per cent from current levels by 2020, an increase of around $9000 in today’s dollars. By 2050, the increase is expected to be more than $30,000.
The Clean Energy Skills program is supporting jobs and skills as we transition to a low carbon economy.
Through the Clean Energy Skills package, up to $32 million is going to help educational institutions and industry to develop the materials and expertise needed to promote clean energy skills.
Tradespersons and professionals alike are developing the skills needed to deliver energy efficiency services, clean energy projects, and low pollution products to Australian households, communities and businesses. This is helping workers of all types transition to a low carbon economy by providing them with the skills that will become increasingly important as businesses adapt to a clean energy future.
Did you know there is a one-stop website specially designed for individuals and businesses applying for government grants? For more information see GrantsLINK.
For further information about helping business, see:
How do companies estimate carbon emissions
Under the carbon pricing mechanism, Australia’s biggest polluters are required to measure their emissions and report them to the Clean Energy Regulator. Emissions from various activities are measured in different ways.
Carbon Farming Initiative
The Carbon Farming Initiative (CFI) is a carbon offsets scheme that provides new economic opportunities for farmers, forest growers and land managers while also helping the environment by reducing carbon pollution. Farmers and land managers are able to generate credits that can then be sold to other businesses wanting to offset their own carbon pollution.
Carbon farming futures
The Carbon Farming Futures program is part of the Land Sector Package under the Australian Governments’ clean energy future plan. The Carbon Farming Futures program is delivering $429 million over six years to help farmers and land managers benefit from carbon farming.
The Opt-In scheme
Certain business transport emissions from fuels (rail and shipping) and non-transport emissions from fuels are subject to an effective carbon price, generally applied by reducing business fuel tax credits or increasing excise paid by an amount equivalent to that of placing the carbon price on fuel emissions.
Some businesses which effectively pay no fuel excise are facing an effective carbon price, through changes to the current fuel tax regime. Eligible businesses may choose, however to have their liquid transport fuel emissions come under the carbon pricing mechanism rather than the fuel tax system.
The income tax treatment of emissions units is being provided in specific provisions in the tax law to provide certainty to taxpayers as to their income tax treatment. Supplies of eligible emissions units under the carbon price are goods and services tax (GST)-free subject to agreement of the States and Territories. The normal GST rules apply to transactions involving financial derivatives of units and the payment of grants.
Detailed modelling from the Treasury released in July 2011 shows:
- The economic costs of delaying action on climate change
- How Australia’s economy and job opportunities will continue to grow with a carbon price
- The modest impact on cost of living with a carbon price
- How carbon pricing will transform our economy and drive a shift towards cleaner energy
- Modelling Report
- The report was released on 10 July 2011. Updated modelling was released on 21 September 2011.
- Modelling Overview
- The overview for modelling a carbon price
- Treasury website – Modelling a carbon price
- Strong growth, low pollution