Australian Prime Minister Kevin Rudd has announced details of $3.8 billion worth of cuts and deferrals to government spending in order to fund the proposed early transition to an emissions trading scheme (ETS) one year ahead of schedule, on 1 July 2014.
The Government has decided to terminate the carbon tax, to help cost of living pressures for families and to reduce costs for small business. "We have taken a decision to terminate the carbon tax.Today we are announcing a decision to move to a floating price," said the PM.
From 1 July next year Australia will move to an emissions trading scheme, one that is used around the world including in countries like Britain, like Germany and soon in China. "We calculate it will cost the same average family $1200 per year more when fully implemented. We expect the change that we are bringing in will see the price on carbon fall from an expected $25.40 a tonne by next July to around $6 a tonne," said the PM. The bringing forward of the emissions trading scheme to 2014 does come at a cost to the budget of $3.8 billion over the forward estimates.