Media Statement - 26th October 2007
A Rudd Labor Government will provide a rebate of up to $500 to help landlords install energy-efficient insulation in 300,000 Australian rental homes in a practical measure to help fight climate change.
Federal Labor’s $150 million Low Emission Plan for Renters will reduce the power bills and greenhouse gas emissions of 300,000 rental properties.
This will be the first national program of its kind in Australia that helps renters and landlords reduce their use of carbon emitting energy. Under Federal Labor’s four year plan, landlords will be able to apply for a rebate of 30 per cent of the cost of installing insulation in a rental property, up to a maximum rebate of $500 per property.
Federal Labor will work with the real estate industry and landlords to implement this initiative. Reducing carbon emissions and electricity bills for 300,000 rental properties under this national initiative is an important plank in Labor’s comprehensive plan to combat climate change and reduce greenhouse gas emissions.
The benefits of
insulation
One of the most cost-effective ways to cut greenhouse gas emissions and
fight climate change is to better insulate our homes. This saves money on our energy bills and makes homes more comfortable for
families to live in – warmer in winter and cooler in
summer.
The Insulation Council of Australia and New Zealand (ICANZ) says that our housing stock is amongst the least energy efficient in the developed world. This week, ICANZ called for a bipartisan commitment to an insulation program.
The ABS has found that around 40 per cent of Australian homes currently have no ceiling insulation – making it more expensive to heat and cool our homes. The ABS survey identified that: “the main reason given for having insulation was to improve comfort, while the main obstacle was not being responsible for insulation.”
That is why Labor will provide incentives for landlords to install insulation in rental properties.
Landlords will be eligible to apply for a rebate of 30 per cent of the cost of installing insulation, up to a maximum rebate of $500 per property. The Productivity Commission estimates that installing ceiling insulation, which typically costs around $1000, could save households upwards of $300 a year.
ICANZ estimates that retrofitting insulation into Australia’s 2.7 million uninsulated homes would deliver immediate and lasting benefits:
- Savings to householders of $2.9 billion on household energy bills a year.
- Individual savings per household of between $89 and $336 a year.
- Emission cuts of some 2.4 million tonnes of greenhouse gases every year.
- Savings of $250 million on avoided need for new energy infrastructure.
- Reduction in electricity prices through delayed infrastructure spending.
- Increase in GDP of $894 million over the period 2008 to 2030.
Federal Labor’s plan will help those living in rental properties, particularly low-income households, who are already feeling cost of living pressures. Proper insulation will ease cost of living pressures over the long-term, and increase the year-round comfort of Australian families.
Federal Labor believes we need a massive effort to insulate Australian homes as part of a comprehensive approach to climate change.
Labor’s commitment to combating climate
change
Federal Labor’s Low Emission Plan for Renters is another practical policy
that is part of our comprehensive plan to tackle dangerous climate
change.
This practical policy to help renters lower their electricity bills and their emissions is in addition to Federal Labor’s Green Loans which provide up to $10,000 to install insulation and other practical measures for individual homeowners.
Federal Labor’s comprehensive plan to tackle climate change also includes:
- Immediately ratifying the Kyoto Protocol;
- Substantially increasing the Mandatory Renewable Energy Target;
- Making every Australian school a 'Solar School';
- Introducing practical measures to improve household energy efficiency, including generous rebates for solar power systems, solar hot water and rainwater tanks as well as low interest loans for Australian families to undertake practical water and energy efficiency measures in their homes;
- Establishing an emissions trading scheme by 2010;
- Committing $500 million to the development of clean coal and low emission technologies through the National Clean Coal Initiative;
- Encouraging the development of a strong vibrant Australian clean energy industry with a $15 million Clean Energy Export Strategy and a $20 million Clean Energy Innovation Centre;
- Establishing a $50 million Australian Solar Institute and a $50 million geothermal initiative; and
- Establishing a $500 million Green Car Innovation Fund to help develop and build low emission cars in Australia.