ACT Party proposes giving carbon credit back to struggling families

Sunday, 13 March 2022

ACT Leader David Seymour and Transport spokesperson Simon Court talk to media about ACT's carbon tax refund policy announced this morning. Newmarket Auckland

The ACT party wants carbon tax revenue to be given to families struggling with rising fuel and living costs.

ACT Leader David Seymour said the proposed Carbon Tax Refund would see the average family receive a dividend of $749.

“The Government is planning to take $4.37 billion from consumers by selling carbon credits to businesses over the next four years,” Seymour said.

Funds generated from the Emissions Trading Scheme (ETS) are earmarked for the Government's climate emergency fund.

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However, Seymour said the carbon tax revenue should go to those struggling with high prices.

“The benefits of this policy would be felt most strongly by those on low and middle incomes.There is a petrol tax crises for New Zealanders up and down the country.

Climate Emergency Response Fund will provide $4.5 billion over the next four years to help achieve a low carbon future for NZ.

“We can't control the global oil price, but the Government can control how much tax it takes.”

Returning the tax revenue collected from the ETS, in the form of a Carbon Tax Refund, would give $749 to a family of four, he said.

Seymour said it is time to give some of that money back to Kiwis and payments could start as early as April this year.

He said The Carbon Tax Refund would take each year’s revenue from ETS auctions and divide it by the population.

“Every adult would receive a reduction in their tax bill by that amount, plus their dependent children’s share. For people whose tax bill was lower than this credit, any remaining amount would be paid directly to them by Inland Revenue.”

Minister for Climate Change James Shaw said money raised from the ETS is a result of changes the Government has made to ensure the ‘biggest’ polluters pay a proper price for their climate pollution.

“David Seymour and his ACT Party opposed every single one of these reforms. But now they want to use those reforms to advance their agenda,' the Green Party co-leader said.

Shaw said a ‘huge’ majority of New Zealanders want proceeds from the ETS to go towards reducing emissions.

“Our Government has decided to use revenues from the Emissions Trading Scheme to create a new Climate Emergency Response Fund.

“This will provide $4.5 billion over the next four years to help create an equitable, low carbon future for Aotearoa where everything from the way we grow our food to how we get around is helping to keep our climate healthy.”

However, Seymour said this climate response fund would not reduce emissions because the amount of allowable emissions in New Zealand is already capped by the ETS.

“ACT’s plan will guide people towards lowering their emissions because if they spend money on carbon-heavy things, their money goes back into the ETS; if they take low carbon options, they avoid ETS charges.