AUSTRALIA’S transport and transport policy is being undermined by a policy that is failing to tackle the climate crisis, the head of a key transport body has warned.
Key points:The carbon tax has been widely condemned by both business and environmentalistsThe new levy will take effect on July 1, and drivers will pay between $30 and $50 a tonneThe levy will be the highest in the worldCar transport companies say it will cut their profitsCar transport industry group the Australian Transport Union (ATU) said the carbon levy would cost them $50 million a year.
It will also result in drivers paying more for the same trip, it said.
The levy is set to go into effect on June 1.
Under the new policy, the carbon fee is charged on the carbon emissions of cars, trucks, buses and motorbikes.
It will be levied at a rate of 20 cents a ton on each kilometre of vehicle transport.
A spokesman for the Australian Taxation Office (ATO) said it was working with the industry to determine the amount of carbon tax revenue that would be returned to motorists.
“As a result of the implementation of the carbon pricing regime, the ATO has identified that the carbon price will result in a reduction in revenue to the Australian taxpayer,” the spokesman said.
The spokesman said the ATU’s position was “supported by the data” and that the tax had a “significant and substantial” impact on revenue.
He said the tax was set to be the most expensive in the OECD, and would be a major revenue loss for the ATG.
He said that “on balance the carbon carbon tax will be a substantial cost for Australian taxpayers”.
Under the Coalition, the Government has pledged to raise $50 billion from the levy by 2020, which it will use to pay for a range of infrastructure projects.
Under Labor, the government promised to raise the levy to $30 a ton in 2020.
But the Government says it will have $30 billion in extra funding to spend by the end of the year.
“The government’s commitment to raise funds for infrastructure projects by raising the carbon market price will not be matched by a change in the carbon duty rate,” the Treasurer, Scott Morrison, said in a statement.
A Treasury spokeswoman said: “The Government has committed to the carbon taxation regime, including a carbon tax, and has set a target to achieve the carbon budget over the 2020-21 financial year.
There is no change to the tax or duty rate under this Government’s policy.
Taxes are set by Parliament.
They are determined by the Australian people and we do not have the power to change or amend the carbon prices or the duty rates.”