Labor Shadow Minister for Climate Change and Energy Mark Butler said,"At a time when energy costs are threatening jobs across the economy,the Australian Investment Guarantee will make it much easier for all Australian businesses to invest in productivity upgrades."
"The opportunities for industrial energy savings in Australia are only made greater by the fact we are a global laggard when it comes to industrial energy efficiency,"he said.
Australia ranks poorly internationally in terms of industrial energy efficiency.
In the International Energy Agency’s recent energy efficiency tables,Australia's manufacturing industry was listed as the most energy-intensive in the world,while US think tank The American Council of an Energy Efficiency Economy listed Australia 21st out of 23 nations for industrial energy efficiency,only ahead of South Africa and Saudi Arabia.
"Unlike previous programs to boost energy efficiency through greater business investment,the Australian Investment Guarantee is easily accessible to all businesses and will operate through the tax system,minimising compliance costs and maximising the benefits to business,workers and the climate,"Mr Butler said.
Australian industry welcomed the tax regime,as well as Labor's planned $1 billion Advanced Manufacturing Future Fund.
"As a measure designed to lift investment,the Investment Guarantee would increase the stock of invested capital,boost the quantity of capital per worker,raise productivity and underwrite an acceleration of real wage growth,"AI Group chief executive Innes Willox said. However,he remained more supportive of the Liberal government's pledge to slash the company tax rate from 30 per cent to 25 per cent.