Australia's minority Labor government passed that
country's first nationwide carbon tax this week. The tax will
go to the Australian senate for approval next month.
The details of the plan are extremely complicated and represent
a compromise among a number of different plans and interests, as
well as a compromise between the governing Labor party and the
Greens.
The initial price for carbon, commencing in 2012, will be $A23
per tonne (equivalent to $C24 per tonne), and increase at 2.5% per
year. The tax will only be applied to 500 of Australia's
largest polluters.
The proceeds of the program will be used to provide individual
income tax relief. Many commentators have speculated that the
subsidies and tax relief were necessary to gain some measure of
popular support for the carbon tax bill.
