The Labor government has introduced its carbon tax legislation into the federal parliament and Charles Sturt University (CSU) has experts available to comment on the tax and what it might mean for everyday Australians and for the future of Prime Minister Julia Gillard.

 

The CSU experts already have strong views on the legislation:

 

Professor Kevin Parton, Strategic Professor, Institute for Land, Water and Society, based at CSU in Orange: “The Carbon Tax legislation has a series of measures which are both a major tax reform and something you would expect to form a component of opposition policy. Most emphasis has been on the so called ’carbon tax’ itself. This is a charge that is imposed on firms that produce greenhouse gases as part of their production processes. The idea is to give them an incentive to shift towards production processes that are greenhouse gas neutral, reducing greenhouse gas emissions and reducing climate change. The second component of the policy is compensation to consumers. The carbon tax part of the policy will increase the costs for some firms, and they will be able to pass through a proportion of such cost increases to consumers in the form of higher prices. Because of this, the government feels obliged to provide most consumers with compensation in the form of increased government support and reduced taxation. This amounts to a major tax reform.

 

“There are other components of the proposed policy that resemble policies that the opposition would support. These include plans to invest directly in technologies such as renewable energy, and spending to assist farmers to sequester carbon. Again, the ultimate target of such measures is to reduce climate change by reducing overall greenhouse gas emissions.

 

“The difference between the government and the opposition is a matter of policy emphasis when it comes to their preferred schemes to deal with climate change. The government has placed price policy at centre stage with direct government investment in support, while the opposition favours direct government action, probably with price policy later as the international climate dictates. Most economic analyses indicate that price policy in the form of an emissions trading scheme is the most efficient policy.”

 

Dr Troy Whitford, lecturer in political science, based at CSU in Wagga Wagga: “The carbon tax will be a significant addition to household expenditure.  The whole process has been marred by deep political fighting and there is a sense this is being forced upon Australians.  The rush to pass this Bill through the federal House of Representatives means that each member will only be able to speak for about one minute on the Bill.  This does not do justice to the importance it will have on ordinary Australians.  Despite assurances from the federal opposition that it would repeal this Bill, I believe it will be rather difficult to wind it back.  The Labor Party needs to get to a point where it can just quietly govern with a series of middle-of-the-road policies so it can get back some confidence in its leadership.  Getting the carbon tax behind them is one way to reach that position.”