Australia’s carbon budget hole
The carbon pricing budget black hole may sound bad now, but it’ll get far worse due to completely unrealistic assumptions in the Coalition’s budget costings. It’s been reported that Treasury will now dramatically revise down the expected revenue from the government’s carbon pricing scheme.
We’ve partnered with Business Spectator to bring you additional commentary and analysis on a range of topics relating to the Federal Budget 2013.
Today it’s been reported that Treasury will now dramatically revise down the expected revenue from the government’s carbon pricing scheme. But the Coalition has a far bigger budget problem on its hands funding its Direct Action emission abatement fund.
It’s now clear that a newly elected Coalition government will be confronted with some tough decisions if it’s to get the budget back into surplus within a few years. It has become apparent that tax cuts granted by both the current Labor and prior Howard government were unsustainable. Analysis by John Daley, of the think tank the Grattan Institute, indicates that to restore the budget to surplus so we’re prepared for future economic downturns, will require both spending cuts and tax increases.
In this difficult fiscal environment the Coalition is saying it’s also committed to using the budget to acquire something in the realm of 140 million tonnes of CO2 emissions abatement by the year 2020.
According to the its 2010 climate change election platform, the Coalition thinks this can be done with a budget allocation of about $1.2 billion per annum (but lower in the first few years as projects and industry scale-up).
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Our partnership with Business Spectator
Through our partnership with Business Spectator, we’re excited to be able to share additional commentary and analysis on a range of topics relating to the Federal Budget — led by the KGB team: Alan Kohler, Stephen Bartholomeusz and Robert Gottliebsen.