On 8 November 2011, the Commonwealth Government’s carbon price legislative package was passed by the Australian Senate.
The Tasmanian Government has long supported the introduction of a national carbon price because it provides the cheapest and most efficient way to reduce greenhouse gas emissions.
The carbon price package included 18 separate Bills to give effect to:
- a national carbon price, starting 1 July next year (2012)
- a jobs and competitiveness package to transition emission intensive, trade exposed industries
- tax reforms to assist households with the modest price impacts of the carbon price scheme.
A carbon price scheme will start in mid 2012 as a fixed carbon price ($23 per tonne) but will move to a flexible price after three years. Around 500 large polluters will need to pay the carbon price.
More than half of the revenue raised by the carbon price will be used to assist households, including through increases to the tax-free threshold and increases in family payments, pensions and allowances.
The Commonwealth Government has stated that its Clean Energy Future package (which includes the carbon price scheme) will cut carbon pollution by at least 160 million tonnes a year in 2020 – the equivalent to taking 45 million cars off the road.
Find out more about the Commonwealth Government’s Clean Energy Future package and the national carbon price scheme.
