The removal of the world’s biggest carbon tax is an important step towards regaining the competitive edge that Australia lost over the last decade. Its repeal will improve prospects for jobs and investment growth in export and import-competing industries and relieve a significant burden on households.
In two years, in direct tax burden alone, it raised $15 billion in new tax, or an annual tax burden of $326 on every single Australian. This compares with an annual tax burden of $4.30 per person for the European carbon pricing scheme and $8.30 per person for the Californian scheme.
The repeal of the carbon tax does not contradict a global trend. According to the World Bank and the International Energy Agency, just eight per cent of global emissions are covered by carbon pricing schemes. In extensive economic modelling exercises, the Commonwealth Treasury correctly predicted that the carbon pricing scheme would increase electricity costs, reduce GDP, reduce productivity growth, slow wage growth and sharply reduce investment in key energy intensive sectors.
The carbon tax did not constitute economic reform and was never calibrated with the efforts of other nations. It goes unlamented.
The minerals sector will continue to work with the Government and other parties on climate change mitigation policy measures that do not impose a harsh burden on households, are calibrated with international efforts and do not compromise the competitiveness of Australia’s export and import competing sectors.