BILLIONAIRE mine developer Clive Palmer has weighed in against the Federal Government, saying its carbon tax as handicapping Australian business.
Domestic companies will pay $23 per tonne for the next two years, before the price changes to market value in line with the European equivalent.
This week, that European price fell to $3.20 per tonne, almost $20 cheaper per tonne than Australia.
Mr Palmer said the difference meant countries competing for investment were now ahead of Australia.
"This is costing investment, this is costing jobs and this country is going to become redundant if we have this kind of impediment placed upon us," Mr Palmer said in a statement.
Treasurer Wayne Swan said the implications of the price crash would be considered in the lead-up to the Federal Budget.