December 29, 2016

Carbon Tax – A Short Roundup

I won’t go into too many details here as it is being covered by everyone and anyone, so here is a quick round up thanks to the crew over at crikey.com.au

This is what our carbon tax is shaping up to be and something we need to be informed about.

So tell us below or on our facebook page what you think – was it too much, is it not enough? What do you think about Carbon Tax?

Price:

  • Carbon price of $23 a tonne starting July 1, 2012, rising by 2.5% in 2013-14 and 2014-15
  • Floating price from July 1, 2015
  • Price floor of $15 a tonne (indexed), ceiling of $20 above the expected international price (indexed).

Pollution target:

  • 5% reduction by 2020 as default position, new target of 80% reduction by 2050
  • First 5 years’ caps announced in 2014 budget, extended every year by one year
  • Nine-member Climate Change Authority (headed by Bernie Fraser) to recommend caps and targets and advise on all aspects of the scheme
  • First report February 2014, then every two years. Government required to explain why if it does not adopt CCA targets.

Coverage:

  • Stationary energy, industrial processes, fugitive emissions, emissions from non-legacy waste
  • Agriculture not covered, light commercial and household transport not covered
  • Other transport to face reduced business fuel tax credits outside agriculture, aviation to face higher excise;
  • PC to review fuel excise arrangements regarding emissions intensity
  • International permit use not permitted until >2015; maximum of 50% of international permits can be used by an entity.

Expected economic impact:

  • 0.7% CPI rise in 2012-13
  • GDP growth reduced by >0.1% pa
  • 10% increase in electricity prices in 2012-13.

Household compensation:

  • Pension to rise by 1.7%
  • Self-funded retirees to receive increase in Senior Supplement
  • Family Tax Benefit to rise by 1.7%.

Tax cuts:

  • Two-stage increase in the tax-free threshold from $6000 to $18,200 on July 1, 2012 and $19,400 in 2015-16 – tax cut of $300pa for incomes up to $68,000
  • Matching adjustment to tax rates to increase second tier (30%) to 32.5% and then to 33%; other tier rates to remain the same; no one to face a tax increase as a result of tax changes
  • One million people no longer have to lodge tax return.

Industry compensation:

  • $9.2 billion in compensation

Information via “Carbon tax: Gillard’s ‘Clean Energy Future’ at a glance

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