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Australian Government Takes Another Step Towards Scrapping Carbon Tax

Adam Haigh, Bloomberg

Australia will re-introduce a bill to repeal a carbon-price mechanism brought in by the previous Labor government, saying it will lower energy costs for consumers and businesses.

Prime Minister Tony Abbott’s government will take the proposed legislation to parliament tomorrow, according to an e-mailed statement from his office. The plan to scrap the levy has been stalled by opposition lawmakers in the Senate, which has the power to block and amend legislation.

The make-up of the upper house will change from July 1 when the Palmer United Party — led by Clive Palmer — will hold the balance of power, meaning Abbott will have to negotiate with the mining magnate to pass laws. The government has said that repealing the carbon price will still allow the world’s 12th-largest economy to meet its promised 5 percent reduction in emissions by 2020.

“Scrapping the carbon tax is a vital part of this government’s economic action strategy because the carbon tax is bad for jobs, it hurts families and it doesn’t help the environment,” Abbott said in the statement. “We’ll save the typical household about A$550 ($516) a year.”

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