Answers to Questions

CARBON CREDITS

In reply to the Hon. A.L. EVANS (28 March 2007).

The Hon. G.E. GAGO (Minister for Environment and Conservation, Minister for Mental Health and Substance Abuse, Minister Assisting the Minister for Health): The Treasurer has provided the following information:

The Hon. Member has asked a number of questions regarding stamp duty and carbon credits. South Australia does not, at present, have any specific policies or legislative mechanisms that make carbon credit trading possible in this State.

The South Australian Government and other States and Territories are leading the way in Australia in commissioning work on designing a national emission trading scheme, following the formation of the NETT (National Emissions Trading Taskforce) in 2004. The Council for the Australian Federation supports the national emission trading scheme put forward by NETT and has announced that States and Territories will introduce a national scheme by the end of 2010, if the Commonwealth Government does not commit to a scheme prior to this.

Property created through the establishment of a national emissions trading scheme is likely to be considered a form of non-real property and so would be liable under the Stamp Duties Act. However, as part of the 2005 06 Budget, the Government committed to the abolition of stamp duty on transfers on non-real property in response to commitments made under the Intergovernmental Agreement on the Reform of Commonwealth State Financial Relations (IGA). This would remove such forms of property, including carbon credits, from the stamp duty base. Stamp duty on non real property transfers will be reduced by one half from 1 July 2009, with full abolition from 1 July 2010.