PM Kevin Rudd is reportedly set to announce plans to scrap the carbon tax in favour of ETS within days.
Prime Minister Kevin Rudd is expected to announce plans to scrap the carbon tax within days. Picture: Gary Ramage Source: The Sunday Telegraph
KEVIN Rudd will announce plans to scrap the carbon tax within days as he clears the decks for an election.
The decision could slash electricity bills by up to $150 a year for families spending $2000 annually, assuming a floating price for carbon emissions as low as $6 per tonne.
Federal cabinet has agreed to fast-track the planned introduction of an emissions trading scheme to July 1, 2014.
In an attempt to neutralise Tony Abbott's anti-carbon tax crusade, the Prime Minister will announce the plan to "ease cost of living pressures for families".
Carbon switch 'a con job'
Australia had previously planned to move from the current fixed-price carbon tax on the biggest polluters - much of which is passed on to consumers through higher utility prices - to an emissions trading scheme, where the price is determined by the market, by July 2015.
The planned shift from a fixed to a floating price threatens to blow a massive hole in the federal budget, costing billions of dollars a year.
The government will claim the shift is "revenue neutral", with tough spending cuts to offset reduced revenue.
The budget "razor gang" - Mr Rudd's expenditure review committee - has worked this week to find budget savings.
The fixed price, presently $24.15 per tonne, will be replaced with a floating price of between $6 and $10 per tonne.
Abbott 'sorry' for ousted Gillard
"Economic modelling will show this will ease cost of living pressures for families and create jobs," a government source said. "This is about transitioning the economy from a post mining boom world to a more competitive agenda."
But the plans have been criticised as a "cowardly act" by the Greens and "a name-changing exercise" by the coalition.
Australian Greens leader Christine Milne slammed the move on the ABC.
"If you believed that climate change was the greatest moral challenge or our time, and it is, we are living in a climate emergency, you would now not be moving to have the big polluters pay less.
"That is what Kevin Rudd is doing. It is all about politics and not policy."
Liberal frontbencher Scott Morrison told Sky News that Rudd's plan was "still a carbon tax by another name".
"There's still a price on the other side, there's still an impact on electricity bills on the other side," Mr Morrison said.
"This is just a change of name, it's not a change in terms of the impact on household budgets, in terms of the impact on cost of living."
Mr Rudd famously declared climate change "the greatest moral and economic challenge of our time" before scrapping plans to introduce emissions trading in 2010 after he was spooked by Tony Abbott's "great big new tax" campaign.
In another sign of an election possibly as early as August, Mr Rudd won locally controlled preselections for Labor candidates yesterday at a meeting of the ALP national executive. This including backing Julia Gillard's preferred successor in the Melbourne seat of Lalor, Joanne Ryan.
Education Minister Bill Shorten will fly to Sydney tonight to meet with Catholic schools in a bid to strike a deal for support of the Better Schools reforms.
Queensland, Victoria and WA are still to sign the deal.
Impersonators back in business
While the extra cash for Catholic schools is assured under the legislation, the Rudd government is keen to get their official blessing.
"Catholic schools have served some of the most disadvantaged communities in this country for more than 150 years," Mr Shorten said.
Mr Abbott last night described the carbon tax change as a deception. "Mr Rudd can change the name but, whether it is fixed or floating, it is still a carbon tax," he said. "It is still a tax on electricity bills which will still hurt families and still hurt local families.
"Nothing has changed today for Australian families. The carbon tax they paid yesterday, they are still paying today.
"All Mr Rudd has confirmed is that this election he will still be campaigning for a carbon tax, while the Coalition will be campaigning to scrap the carbon tax, lock, stock and barrel.
"This is just an election trick from the Prime Minister who has always wanted families to pay the carbon tax."
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