Key points of the carbon price package
AAP
- Carbon price to start on July 1, 2012, starting at $23 a tonne rising at 2.5 per cent a year.
- It will be paid by about 500 biggest polluters.
- It will be replaced by an emissions trading scheme from July 1, 2015.
- Price ceiling and floor to apply when trading starts.
- There will be two rounds of tax cuts and increases in allowances, payments and benefits.
- The tax free threshold will almost triple to $18,200 from July 1, 2012, and then increase to $19,400 from July 1, 2015.
- Every taxpayer with income below $80,000 to get tax cut from July 1, 2012.
- Costs for the average household will rise by $9.90 a week.
- Average household assistance, under the "clean energy supplement", will be $10.10 a week.
- $9.2 billion will be allocated over the first three years for industry assistance.
- Most exposed industries such as steel, aluminium, zinc, pulp and paper makers will get free permits representing 94.5 per cent of industry average carbon costs.
- $300 million has set aside help the steel industry move to a clean energy future.
- $1.3 billion has been set aside for a Coal Sector Jobs Package, targeted at mines that are most affected by the carbon price.
- A $10 billion Clean Energy Finance Corporation will be established to invest in new technology.
- $3.2 billion has been allocated to the Australian Renewable Energy Agency.
- Closure of 2000 megawatts of dirtiest power generators by 2020.
- Agriculture is not subject to carbon price, farmers to benefit from carbon farming.
- Small grants will be made for community-based energy efficiency programs.
- Transport fuel excluded, but heavy transport to start paying carbon tax in 2014.
- Climate Change Authority to advise on pollution caps and meeting emissions targets.
Comments on this article
Distortions
Economists tell us that every line after the first one above is a "distortion" that adds to the cost of achieving emission reduction. We understand why everyone wants some exemption or other benefit, but we also need to know that each one brings a "hit" to the efficiency of the program and makes it more expensive, overall.
Totally agree about removal of Fossil fuel susidies
Really. Taxpayers have their savings used to subsidise the coal, gas industries? Yes we all know that but does that not prove how effective the lobbyists are? It proves that the bribes are working, that avarice is alive and well and that the power of the single vote is being raped by corporate pitbulls.
Is it any wonder why Australians, living in one of the worlds most fortunate countries, are refusing to part with their money. Good on you Australians!! Keep it up!
$7 Billion in Fossil Fuel Industry Subsidies Need to Be Stopped!
Well done, MPCCC, in getting the ball rolling to secure a carbon pollution free future for Australia. However, this question needs to be answered, when will the $7 billion in existing subsidies to the fossil fuel industry be stopped and those funds be redirected into renewable energy?