Yesterday the Federal Treasurer, the Honourable Wayne Swan, announced the 2013/2014 Federal Budget for Australia.
We have summarised some of the key items of most interest to our clients and friends:
Accelerated Funding: Clean Technology Investment Program (CTIP)
- The CTIP program will retain a $1 billion budget; however the timeframe will now see $160 million being brought forward to 2014-2015 rather than 2015-2017. As a result the program will deliver the same total over a seven year period. This ‘front-loading’ is expected to instigate industry participation earlier, therefore increasing industry stimulus particularly for cleaner energy initiatives.
- Budget statement from AusIndustry 15 May 2013 “The key message for AusIndustry customers and stakeholders is that CTIP program demand is strong and growing. There is no change to the funding commitment. The Government has maintained its $1 billion commitment to the investment programs”.
Treasury Downgrade Australian Carbon Unit Price Projections for Flexible Price Period
- The carbon pricing mechanism remains within the Clean Energy Future Package, although some changes have been made. As a consequence of the flailing European Union (EU) carbon price and the fact that our scheme will link with the EU’s (on 1 July 2015) the Government has revised Australia’s projected price during the flexible period. Revisions are down from $29.00/carbon unit to $12.10 for the 2015/16 compliance year and $18.60 for 2016/17.
- landfill operators who have used the $29 price projection to calculate their future ‘carbon loading cost’ for each tonne of waste deposited to landfill post 1 July 2012 may be required to re-calibrate their carbon-loading charge
- manufacturers, and other participants, who have used the $29 projection to increase the costs of goods or services produced post 1 July 2012 may need to re-visit their pricing strategy and the impacts of up-stream energy intensive inputs they purchase.
- Additional budgetary measures can be found at Minister Combet’s latest media release here.
Matt is the Managing Director and provides strategic carbon emissions and energy advice for some of Australia’s largest and most well-respected corporations.