The Federal Government has successfully passed its carbon tax package through the Federal Upper House, with the legislation due to take effect in July, 2012.

 

With the assistance from the Greens, the Federal Government has passed the bill, which includes 18 separate legislative pieces.

 

"[This is] a reform long overdue, a reform which represents a clear [divide] in politics in this country between those who look to the future and those who are mired in the fear campaigns of today,” Finance Minister Penny Wong said.

 

The Bill drew heavy criticism from the Federal Opposition, with Opposition Leader Tony Abbot describing the bill as a ‘betrayal of the Australian people.’

 

The Federal Opposition has reiterated its intention to dismantle the legislation if it wins power next election.

 

The package provides for the following:

  • Tax begins at a fixed price of $23 a tonne and rise by 2.5 per cent a year until 2015.
  • Tax will not apply to agricultural emissions or light on-road vehicles
  • Electricity generation, stationary energy, some business transport, waste, industrial processes and fugitive emissions will be covered by the initial tax
  • Average households will see a $9.90 weekly cost rise
  • Average households will receive assistance of $10.10 weekly
  • Free carbon permits will be the given to the most emissions-intensive and trade-exposed industries
  • Aim to cut pollution by 80 per cent by 2050.