The Government has advised that on Sunday 10 July 2011 they will announce the price on pollution that is the central element of their policy to tackle climate change, cut pollution and drive the transformation of the Australian economy to a clean energy future. The Government’s priorities in designing the carbon price have been stated as cutting pollution, protecting household budgets, and supporting jobs, but you can form your own opinion. Around half the revenue raised will be used to offset the impact to the community. A carbon price is seen as an important reform that will create incentives to lower Australia’s carbon pollution at the lowest cost to the economy. They suggest it will do this by putting a price tag on the pollution of fewer than 1,000 businesses.
With only half the revenue raised to be used for tax cuts and increased payments to households, the cost to the Australian household will be significant. Originally the government committed that all revenue raised would be applied to offset the impact to the community. This has progressively fallen to the current offering of 50%. The final figure will probably be much less than 50% and progressively phased out.
After announcing the policy on Sunday the Government intends to introduce legislation to Parliament later this year.