ETS Mark 2 to wreak havoc with Pension

“ACCUs are Australian Carbon Credit Units traded by 150 large carbon emitting companies including electricity generators since 1 July 2016. The only part of the Emissions Trading Scheme that has been abolished is the Energy Supplement, which compensates for price increases”, said CPSA Policy Coordinator Paul Versteege.

“The Energy Supplement was introduced as compensation for price increases caused by the Emissions Trading Scheme (ETS). The ETS was introduced under the Gillard Government and abolished under the Abbott Government. ACCUs, or ETS Mark 2, were introduced by the Turnbull Government, softly-softly.

“ETS Mark 2 does not provide compensation to anyone going on social security from 1 January 2017, while the Energy Supplement of current social security recipients will no longer be indexed.

“From 1 January 2017 we will have two classes of pensioners. One with an Energy Supplement and one without an Energy Supplement.

”CPSA calls on the Government to retain the Energy Supplement and continue its indexation, said Paul Versteege.

The pension comes in three parts. There's the basic pension, which is the main part. There's the pension supplement and there's the Energy Supplement. The Energy Supplement is paid quarterly, but on a fortnightly basis it's worth $14.10 to singles and $21.20 to couples.

Paul Versteege 0409 81 41 81