The Australian government is set to announced a carbon tax of $23 as the government concluded political negotiations with all the parties recently. Prime Minister Julia Gillard had led the negotiations with the Greens and Independents on several issues regarding the proposed carbon tax.
Among other decisions taken during the negotiations, use of petrol by cars, light vehicles and small businesses has been exempted from the carbon tax. However, heavy commercial vehicles such as trucks have not been exempted. It is expected that public transport might eventually been affected by the carbon tax.
While the Greens had lobbied for a higher carbon tax of close to $30 the Independents and the government, itself, wanted a figure close to $20. The government was able to build consensus on a figure of $23 but had to agree to set up a multi billion dollar fund for renewable energy and a review of the fuel excise tax regime. $2 billion collected from the carbon tax would be invested in renewable energy annually.
The carbon tax would affected far lesser number of businesses than anticipated. Only about 500 businesses would now be directly affected by the carbon tax from the earlier expected number of 1000. Businesses involved in emission of synthetic greenhouse gases will be covered under a separate regulations and have, thus, been exempted from the carbon tax. Carbon emissions from all sectors in Australia are expected to rise considerably through 2020.
After days of protests against the carbon tax which, some believe, would add to the economic woes of the common people, the government announced rebates for families affected by higher costs. The Prime Minister confirmed that rebates on carbon tax would cover seven million people.
Carbon tax would be launched in Australia from 1 July 2012.
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