After months of controversy the Australian government has finally introduced the carbon tax bill into parliament. The legislation will be effective from July 1, 2012. After long scientific research and economic analysis the government has decided that the harmful effect of the carbon pollution needs to be dealt with and thereby, introduced the carbon tax Bill.
The levy will be set at AUD23 (USD24.5) per tonne of pollution. This is to rise by 2.5% a year in real terms during a three-year fixed price period until July 1, 2015. The carbon price mechanism will then turn into a transition to an emissions trading scheme where the price will be determined by the market.
Under this carbon pricing mechanism around 500 businesses will be required to pay for their pollution. It has also been decided that carbon price revenue will be used to support jobs and to invest in clean energy and climate change programmes.
