The Government understands that some regions and communities will face more significant burdens than others from the carbon price.
A central element in the Australian approach to economic reform over the past three decades has been structural adjustment assistance—government help to ease the transition for strongly affected regions and communities. The Government will maintain this approach under the clean energy plan. Funding of $200 million will be set aside for structural adjustment assistance for regions and communities if required, and there will be other initiatives which assist strongly-affected areas and sectors.
The Department of Regional Australia, Regional Development and Local Government will monitor the socio-economic impacts of the carbon price on regions to determine areas where impacts are acute and structural adjustment assistance may be required.
Structural adjustment assistance will be prioritised towards regions that:
- have a narrow economic base with a high reliance on industries that are significantly affected by a carbon price
- experience a contraction in employment due to the impact of a carbon price on local industries
- face challenges developing alternative sources of economic activity and employment.
For identified regions, structural adjustment assistance will be delivered through formal arrangements that engage state, territory and local governments, community groups and trade unions.
Funding will support regional communities on a case-by-case basis. Examples of programs that may be supported through this program include support for displaced workers and their families, support for affected small businesses, community development programs, and economic diversification programs.
For further information on the carbon price and the Government's commitment to a Clean Energy Future, please see the Fact Sheets below or visit the Clean Energy Future website [insert CEF tile].
[insert link to Assistance for regional workers and communities fact sheet]
[insert link to Regional Australia fact sheet]