“The Government’s Green Paper sets out the proposed way to transform the Australian economy to a lower carbon pollution future and the proposed support to help households and businesses adjust to this economic transformation,” Mr O’Connor said. 

“Carbon pollution is causing climate change, resulting in higher temperatures, more droughts, rising sea levels and more extreme weather. The potential impacts of climate change mean that failure to tackle it is not an option.” 

“There is no cost free way to tackle climate change. The Carbon Pollution Reduction Scheme is the most efficient, lowest cost and most economically responsible way to reduce the carbon pollution that is causing climate change.    

The Government will provide assistance to help with additional costs. To offset the initial price impact on fuel associated with the introduction of the Carbon Pollution Reduction Scheme, the Government will cut fuel taxes on a cent for cent basis. 

The adequacy of this adjustment measure will be assessed for three years and the Government will adjust the offset accordingly. At the end of the three year period the measure will be reviewed.

The Government will increase payments, above automatic indexation, to pensioners, carers, seniors and others, and provide other assistance to meet the overall increase in the cost of living flowing from the scheme.  

Assistance to other low-income and middle-income households will be increased through the tax and payments systems to meet any overall increase in the cost of living resulting from the scheme. 

The Government will also establish the Climate Change Action Fund (CCAF) to help business in the transition to a cleaner economy. The Rudd Government's Carbon Pollution Reduction Scheme Green Paper can be found at www.climatechange.gov.au. 

Submissions are due on or by 10 September 2008. Please contact Brendan O’Connor’s office on 8361-6588 for submission guidelines or a copy of the report.