Australia votes to revoke carbon tax
Published: 29 Jul 2014

Australian politicians have voted to revoke a levy placed against the largest polluters in the country.

Since it was implemented in July 2012, the tax saw that the top 348 polluters were charged 23 Australian dollars for every tonne of greenhouse gases produced.

The Government responsible for the tax, Labor, claim the levy helps climate change, whereas the Liberal-Nationalist Government currently in power have said that the charge "penalises legitimate businesses." Prime Minister Tony Abbott said that the tax cost jobs and forced energy prices up.

The BBC have revealed that he "plans to replace it with a [Aus]$2.55bn taxpayer-funded plan under which industries will be paid to reduce emissions and use cleaner energy."

This kind of change will doubtless divide the nation. Australia is the worst polluter per head of population, so change is sorely needed, but the question has come to two very different offered solutions.

On one hand, the former Government implemented changes at a charge to business, whereas the new Government aim to place the cost on taxpayers and reward polluters for efforts to reduce.

Cedrec's take:

Has it ever occurred to Prime Minister Tony Abbott and his coalition that action by businesses should already have been taken? The charge should have encouraged changes to reduce pollution long before now, yet it seems businesses accused of being an enemy to Australia's green policies stand to benefit the most, if such a scheme is introduced.

Regardless of the decision, it seems once again the taxpayer is liable to pay for business blunders.

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