It’s a big day in parliament after the House of Representatives passed one of the country’s biggest economic reforms in parliament this morning: introducing a carbon tax.
The ‘clean energy future bills’ championed by Prime Minister Julia Gillard‘s Labor Government was passed with a tight vote in the House of Reps at 74 votes in favour of the bill versus 72 votes against. Greens Senator Bob Brown said “This is a proud to be Australian day. There’s a lot of negativity in the air but it’s been swamped by positivity. The sun’s out, the sun’s shining and it’s very symbolic of the future for Australia and its energy needs.”
Opposition leader Tony Abbott has pledged to repeal the tax, telling ABC radio: “I am giving you the most definite commitment any politician can give that this tax will go. This is a pledge in blood. This tax will go.”
The carbon price will go into effect in June 2012. The tax incentive has been promoted as holding the obvious environmental benefits as well as long-term economic benefits. First up it’s about reducing pollution in a cheap way. Basically, the country’s biggest polluters will now have to pay for each tonne of pollution they release into the atmosphere. But what does putting a price on carbon mean for us, as individuals?
We’ll have to consult an expert for the proper breakdown. But basically (and I do mean basically) you and I won’t actually pay the tax directly ourselves. Rather, the cost of things like electricity will increase – which means as of 1 June 2012 our bills are going to be bigger. If your annual wage is under $80,000 the government will compensate you for the aforementioned increased expense via one of two options: tax cuts or welfare payments. The less rich you are, the more the government will give you to help you manage the new prices without living in the gutter.
Okay fuck that’s a terrible explanation. To get a better idea of how you – yourself – will be compensated, take the household assistance estimator at Clean Energy Future website.
The public response to the Carbon Tax being passed has been mixed and passionate – to say the least. Here’s a small taste of the hefty opinions from the public response to the carbon price announcement on the Sydney Morning Herald website:
Australians definitely do not like major decisions being made without their consultation!
We would love to hear your opinions on carbon pricing. Have your say in the comments section.
Title Image by Morne de Klerk via Stringer/Getty
