Carbon Tax: The basics

KPMG has outlined the key elements of the carbon tax.

 

Key design elements

  • Commencement date of 1 July 2012.
  • Fixed carbon price for the first 3 years – $23 in Year 1 up to $25.40 in Year 3.
  • A flexible carbon price will be introduced on 1 July 2015, which will be determined through an emissions trading scheme (ETS).
  • Assistance will be provided to businesses and households through a range of mechanisms.
  • All revenue raised from the sale of carbon permits will be used to encourage investment in clean energy activities and ease the cost burden of transition.
  • A six cents per litre litre diesel fuel tax. (Which effectively negates the diesel fuel rebates for the mining industry.)

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