ON POINT: The repeal bill, 2014 timing and the FY15 windfall ‘game’

The Coalition yesterday released its draft bills to repeal the carbon tax and disband the Climate Change Authority. The government has stated that it intends to table the bill in Parliament when it resumes on the week commencing November 11, assuming all writs are returned by that date following recounts in the House of Representatives (seat of Fairfax). In line with this date, public consultation on the repeal bill will be open until November 4, 2013.

Below, we provide a breakdown of the scope of the Coalition’s draft legislation. We also update our timing scenarios to account for the return of Parliament, with analysis continuing to indicate that the earliest point of repeal of the carbon tax is likely to be October-December 2014, mid way through the FY15 compliance year, unless a compromised outcome is negotiated in the current Senate prior to June 30 2014.

ON POINT ANALYSIS – The Coalition’s carbon tax repeal bill

• The Coalition’s carbon tax repeal bill proposes the disbanding of the carbon tax and industry assistance programs at the end of the current FY14 compliance year (June 30, 2014), with components of the Clean Energy Act continuing until February 2015 (final surrender date