Official figures confirm that the carbon tax is imposing a $150 million burden on the Australian economy every week. What they don’t reveal, is that unless the Parliament acts, that bill will increase to $157.5 million per week on 1 July.
This is unparalleled self-inflicted assault on the competitiveness of on Australia’s export and import- competing sectors. It is completely out of synch with international efforts. Australia’s carbon tax raises more tax every 4 weeks than the California emissions trading scheme is forecast to raise in its first 2 years. The competitive hit on Australian exporters coincides with weak commodity prices and new supply from other countries unhampered by a comparable carbon tax. According to the ABS, mining employment has fallen 9 per cent since its peak – that peak was one month before the carbon tax was put in place.
East coast mining companies are paying about 18 per cent more on their electricity bills to cover the carbon tax. In fiercely competitive global commodity markets, these costs simply cannot be passed on.
Like households across the country, the 75,000 Australian businesses paying the carbon tax are looking forward to the speedy removal of this deadweight on our economy that delivers negligible environmental benefit. The carbon tax should be repealed in the first sitting of the Parliament in July.