Another carbon tax to cripple our businesses
IN THE past week, Greta Thunberg was “arrested” for trying to stop the expansion of a coal mine that would bulldoze the abandoned German town of Luetzerath. While a German Greens government is desperately trying to increase the supply of reliable energy, even against the wishes of St Greta, our Labor-Greens government announced a $15 billion tax hit on our energy producing and consuming businesses.
The Labor Party does not call it a tax, instead preferring the Orwellian moniker of a “safeguard mechanism”.
The safeguard mechanism would make 215 Australian businesses reduce their carbon emissions by five per cent a year. They will have to pay a capped price of $75 per tonne to do this.
Over the next seven years until 2030, these businesses will have to reduce their emissions by 205 million tonnes. At $75 a tonne, which is three times the cost of Gillard’s carbon tax, this amounts to a $15 billion new tax to do business in Australia.
The $75 capped price will probably prevail because in Europe carbon credits trade at over $100 per tonne and in New Zealand the price is already at $70 a tonne.
Former Labor MP Joel Fitzgibbon admitted Labor’s policy was a carbon tax. Like all carbon taxes it will increase the cost of living.
Airlines will be made to pay the tax. You will be made to tick the green box on your plane ticket under Labor.
But this new carbon tax will be paid mostly by the mines and factories in regional Australia. The tax will hit 63 coal mines, 22 iron ore mines, 35 gas production facilities
and what is left of our manufacturing of steel, aluminium and fertilisers.
It is not a good idea to tax the industries that make our nation prosperous.
Over 84 per cent of the carbon emissions covered by Labor’s carbon tax come from businesses in the regions, even though only 30 per cent of Australians live in the regions.
Labor’s new carbon tax is a tax on those that wear hi-vis to work.
NSW is hit hard by Labor’s new carbon tax. The 38 NSW businesses hit by the tax would be up for a bill of $2.8 billion, a much higher burden than the just $700 million that will be paid by Victorian businesses.
The Hunter region’s coal industry will pay more than half of the state’s tax bill even though it is mining that is keeping our nation afloat.
Coal is once again Australia’s largest export but the thanks it gets is to pay more tax to prop up a bloated Canberra bureaucracy.
Meanwhile, Labor’s policy lets the banks off scot-free. Banks are large emitters themselves due to the energy use of their data centres.
However, under Labor’s policy, emissions from the use of electricity is inexplicably ignored.
If Labor had included emissions from electricity use, three of the four big banks would have carbon emissions over the 100,000-tonne threshold and have to pay the tax.
So Labor’s climate policy taxes the jobs in the hi-vis industries of mining and manufacturing, while turning a blind eye to the emissions created by jobs in suits.
And with those hi-vis industries, guess who they will have to buy the carbon credits from? That’s right, the banks. No wonder the banking industry is one of the loudest supporters of Labor’s climate plan.
Labor has tried to claim that this new tax will not hurt business or jobs because other countries want us to reduce carbon emissions and, if we do not, we will lose their custom.
However, this argument is completely undermined by Labor’s own suggestion that we will now need to introduce carbon tariffs on imported products to offset the costs of their carbon tax on Australian businesses.
If Labor’s new carbon tax actually helps Australian businesses sell products to climate-conscious customers, why would we need a tariff to provide them protection against low cost goods from countries that do not impose a carbon tax?
This just proves that this new tax is another blow to Australia’s manufacturing industries.
The biggest winner of Labor’s carbon tax will be China, who will take more of our manufacturing jobs as they continue to build coal-fired power plants like they are going out of fashion.
No wonder Anthony Albanese is Xi Jinping’s new best friend.