Australia to have a carbon tax after all

After months of uncertainty, the Gillard Labor government has finally announced that Australia will have a carbon tax. This is an effective policy backflip since the last election campaign, and the initial reaction from the voters and the opposition has been largely negative.

Public unease over the proposed tax has been widespread, with many lower and middle income earners voicing concern about a rise in electricity prices.

The government has taken a significant hit in the polls over the carbon tax announcement, amid heavy criticism from the opposition that Julia Gillard does not have a mandate from the Australian people. Tony Abbot has decried the carbon tax as illegitimate, and suggested Gillard call an early election and put the issue to the people.

Much uncertainty remains over how the tax will work, and a rigorous debate on the issue lies ahead. If this tax becomes a reality there will be significant implications for Australian industry – particularly the resources sector.

At Envirosafe Solutions, we believe that reducing carbon emissions is a positive step toward a green future, yet at the same time we understand the pressures faced by Australian industry. Whether or not Gillard’s carbon tax is successful, we will be keeping a close eye on developments.