A package of exemptions, tax cuts and benefits increases were revealed yesterday as part of the government’s carbon pricing package, so is your business one of the lucky ones or will you be forced to bear the brunt of Prime Minister Julia Gillard’s tax?
Carbon tax at-a-glance
- Carbon tax to start 1 July 2012
- Starting at $23 a tonne, raising 2.5% each year to 2015
- Emissions trading scheme taking over from 2015
- 500 of Australia’s biggest polluters expected to pay
- Companies that produce 25,000 tonnes of carbon dioxide per year or more will be penalised
- 2,000 megawatts of worst power generators to close by 2020
Exemptions
- Agriculture and forestry industries will be exempt from tax
- Farmers will benefit from carbon tax, as agriculture industry does not pay
- Heavy transport industry to start paying carbon tax in 2014
Assistance
- $9.2 billion of industry assistance to be allocated over the first three years
- Steel, zinc, aluminium, pulp and paper manufacturers to receive carbon permits for 94.5% of industry-average emissions
- $300 million for steel industry to invest in energy reduction technology
- $1.3 billion for coal mines most affected by the carbon price
- $10 billion Clean Energy Finance Corporation to help industry invest in new technology
- Australian Renewable Energy Agency gets $3.2 billion
Questions? Comments? Post your thoughts below or email sarah.falson@reedbusiness.com.au