Carbon tax in Australia in shambles, promised a rebate but now rebate is cancelled, was sold as 'budget neutral,' gov. ran ad campaign, Europe collapse cited

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""The carbon tax is in chaos. Linking with Europe
has meant that Australian taxpayers are now facing a budget black hole of between $6-8 billion.""

5/8/13, "Families to miss out on carbon tax compensation as Budget woes continue," adelaidenow.com, Australia

"Households will miss out on tax breaks pledged as part of the government's carbon tax compensation package, in another broken promise by Labor in the lead-up to next week's budget. Climate Change Minister Greg Combet this morning announced the forecast price on carbon when Australia moved to a floating price emissions trading scheme in 2015 would be revised down.

As a result, slated tax cuts promised from that year will be shelved. "This is a sensible measure that we will be announcing in the budget," he said.

"They will be deferred until such time the carbon price exceeded $25.40, whenever that will be."
It is the latest in a string of broken promises from Labor. Yesterday the government confirmed it would cut a flagged $600 boost to Family Tax Benefit part A because of worsening economic conditions.

Mr Combet indicated there could be further cuts to the carbon compensation package to come in next Tuesday’s budget. "The original package was broadly budget neutral with the revised forecasts to be announced in the budget," Mr Combet said....

The carbon price is currently fixed at $23 a tonne and is paid by the biggest polluters, such as coal powered electricity stations. Greens Leader Christine Milne today said it was "logical" that the level of compensation would change according to the carbon price....

"The Greens in the balance of power will stand up against the destructive excesses of an Abbott government wanting to slash both energy efficiency programs, and the renewable energy target to way below the current 41,000 gigawatt hour goal."

She said the Greens would pressure Labor to maintain its "backbone" on carbon pricing beyond the September election. Mr Combet stressed that measures already in place, such as ongoing increases to regular government payments and a tripling of the tax-free threshold would remain.

Treasury had originally forecast a carbon price of $29 a tonne in 2015 when the local emissions trading scheme is linked to the European ETS, but was forced to halve that to $15 after a price collapse in Europe.

Mr Combet said that with the revised price on carbon households and businesses would ultimately have less of an impost from the tax and therefore did not need as much compensation. "The costs to households and businesses will be lower and that is a good thing," he said.

"We’ve made a very important reform here and it is working. It is very important that we make our contribution to climate change internationally and we do it at the lowest possible cost to the economy."

The household assistance package was announced in 2011 to compensate families for the hit to their back pockets from Labor’s carbon tax.

It included measures such as ongoing increases to regular government payments and a tripling of the tax-free threshold.

The government ran television, newspaper and radio advertisements spruiking the extra cash and up until last month remained firm on its commitment.

Last week the Prime Minister said everything was on the table in terms of finding savings in the budget, which is facing a $17 billion revenue black hole. The Coalition this morning jumped on the $1.4 billion tax hit.

"The government gets the revenue numbers wrong and it is Australian families and businesses which are picking up the bill," Climate spokesman Greg Hunt said.

"The carbon tax is in chaos. Linking with Europe has meant that Australian taxpayers are now facing a budget black hole of between $6-8 billion."" via Tom Nelson


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