Climate

Climate change initiatives in Budget 2022 follow the Government’s recently released Emissions Reduction Plan, and several initiatives have already been announced in that plan. $2.9 billion of funding (sourced from cash proceeds from the Emissions Trading Scheme) is allocated to investments to be made by the Climate Emergency Response Fund (CERF), such as:

• a vehicle “scrap and replace” scheme providing funding and “in-kind support” to low-income households to shift to low emission alternatives, upon scrapping their vehicle
• support for moves to shift away from motor vehicle reliance, like urban cycle networks, walkable neighbourhoods, safer, greener, healthier school travel, and more reliable and user-friendly public transport
• decarbonising the public transport bus fleet, with zero-emission buses and associated infrastructure

Forestry and agriculture sector investments include:

• reducing the use of coal and other carbon-intensive fuels and materials
• creating large-scale native forests as carbon sinks
• a Centre for Climate Action in Agriculture to support innovation and research
• an agricultural emissions pricing scheme

Notably absent are tax concessions which could assist here, such as FBT exemptions for employer-subsidised public transport or electric vehicles.