Miscellaneous 2009

The compliance costs of Australia's emissions trading scheme: An exploratory analysis

Source: Australian Tax Forum Journal Article

Published Date: 1 Nov 2009

The Australian Government intends to introduce a carbon emissions permit trading scheme from 1 July 2011 (subject to Parliamentary approval), postponed one year from its originally proposed starting date, and to be phased in over probably a decade or so. The revenue effect of this scheme is estimated to be A$4.5 billion in 2011-12 and A$13 billion in 2012-13, its first year of (‘real’) operation with auctioned permits. The scheme will initially comprise around 1,000 large emitters, namely those with emissions over 25,000 tonnes of carbon dioxide equivalent per annum. The Government will allocate some free permits in the early years of its Emissions Trading Scheme (ETS) as a form of compensation to certain industries. There will be compensation for households, businesses and affected industries under a roughly ‘revenue-neutral’ system. To date the Government has recognized specific compliance costs issues, such as the application of Goods and Services Tax to trading, but has not made any analysis of possible overall compliance costs of the ETS.

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  • Published By: Jeff Pope
  • Published On:1 Nov 2009

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Miscellaneous 2009

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