Implications of repealing the Carbon Pricing Mechanism and moving to the Direct Action Plan

The Government has stated that its first order of business will be the repeal of the Carbon Pricing Mechanism (CPM) (or the so-called 'carbon tax'). In place of the CPM, the Government will address climate change and carbon emissions through its Direct Action Plan (Direct Action Plan). It is intended that implementation of the Direct Action Plan will provide the mechanism for the Government to achieve its commitment to reduce greenhouse gas emissions by at least 5% on 2000 levels by 2020.

Repealing the CPM

Assuming the Government sticks to its previously announced deadlines, the Government will introduce legislation to repeal the CPM (Repeal Bill) on the first sitting day of Parliament. The Honourable Greg Hunt has stated that the CPM will then be repealed by April 2014 or, at the latest, by July 2014.