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News > Global environmental current affairs > The Australian Treasury has released the results of its carbon tax calculations.

The Australian Treasury has released the results of its carbon tax calculations.

2011-05-16

An official Australian calculation released on April 1 showed that if Australia implements the proposed carbon tax system, each Australian household will spend an additional AU$863 (approximately US$894.5) per year.

According to model calculations submitted by the Australian Treasurer to Treasurer Wayne Swan, if a carbon tax is implemented, the price of carbon emissions will be AU$30 (approximately US$31.1) per tonne before any subsidies are issued. This would increase the weekly expenses of the average Australian household by AU$16.6 (approximately US$17.2).

This calculation also indicates that if the government does not implement measures such as tax cuts, the carbon tax will raise the consumer price index by 1.48 percentage points. The Treasury Department warns that due to the lack of benchmarks, frequent tax rate adjustments may occur in the initial years of the carbon tax, which will create uncertainty for relevant businesses.

Currently, the Australian Labor government is working to introduce a carbon emissions pricing mechanism for the Australian economy in order to achieve energy conservation and carbon reduction goals. However, this move has been met with fierce resistance from the opposition. Some opposition figures point out that, given the lack of global consensus on this issue, Australia's unilateral implementation of a carbon tax system would sacrifice its competitiveness.

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