News

Govt scraps $15 carbon floor price

THE Federal Government could risk a budget black hole after yesterday scraping the proposed $15-a-tonne floor price for the nation's carbon trading floating market from 2015.

Announcing major changes to the carbon tax scheme, Climate Change Minister Greg Combet said the government was removing the floor price from 2015, as well as creating a one-way market with Europe, which currently has a carbon price floating between EU$3 and EU$10.

This market, he said, would mean Australian businesses could buy European carbon credits from now until 2015, but Europeans would not be able to buy Australia-provided credits until after 2018, when he expected negotiations with the European Union to be complete.

Treasury modelling of the carbon price in the 2012-13 budget was based on an average price of $23 a tonne, expecting to raise about $24billion in government revenue over the forward estimates, far above the current EU price that will be linked to the Australian market.

If the international price falls below the Treasury estimates, it could create a budget hole, due to household and business sector compensation to make up for the cost.

But Mr Combet said he was confident there would be no budget blow-out as a result if the European price did not rise to the figures Treasury put in to their economic modelling for the budget.

He said the government would not be deserting its plans for household assistance, even if the price did not reach Treasury estimates.

Instead, he said, new access to the world's largest carbon market in Europe would present more opportunities for Australian businesses, which were under risk due to the floor price.

As part of the European agreement, a new limit on Kyoto international credits will be created, with Australian business only able to access up to half of their "carbon liabilities" from the international market and only 12.5% able to be met by Kyoto-registered units.

Topics:  carbon price, carbon tax, greg combet




Stay Connected

Update your news preferences and get the latest news delivered to your inbox.

Serious motorcycle crash on Southern Downs

BE VIGILANT: Parents are being warned to keep an eye on their kids during the holidays.

Woman injured in motorcycle crash

Jay Laga’aia performs for Clifton kids

G’DAY JAY: Jay Laga'aia performing at Clifton State School for Under Eights Week.

Jay Laga'aia performed to 400 under eights.

Warwick furniture store latest business set to shut up shop

Warwick Furniture Court owner Steve Oakland says a downturn in the economy is behind his decision to close his store later in the year.

Furniture Court to close down in October

Latest deals and offers


She’ll be apples in Stanthorpe as festival kicks off

Jonathan Apple, festival president John Thouard, former Young Ambassadors Miriam Spina and Taylah Wantling and Isabella Grape welcomed the start of the 2016 Festival.

It’s a great start for the 10 days of festival ahead'

The best retro movies of the week? May 27 - June 3

Gregory Peck Photo Contributed

This week TV fan get to see Tom Cruise in a 1980s classics

Warwick High student named as hockey nationals umpire

Interview with Warwick High student Isaac Johnson who has been named as an umpire...

Start of Pentath-run wheelchair race in Warwick

Start of Wheelchair race at Pentath-run 1500

Warwick Hospital Get Up Petition

Deuchar resident Trevor Ives is heading up a GetUp petition against Federal Government cuts of as much as $62.8 million to funding at Warwick Hospital. Photo Jayden Brown / Warwick Daily News

Deuchar resident Trevor Ives talks about a GetUp petition calling for no cuts to...

Own Sunshine Coast property? You’re about to make money

UP AND UP: Property owners are likely to win from rent and price increases but tenants and first home buyers might not be so happy. Photo: Brett Wortman / Sunshine Coast Daily

Good new for property owners, not so good for buyers and tenants.

Sale nears on last large block of land in Coolum

The 43.37ha property on South Coolum Rd has sold.

South Coolum Rd property to be land banked