AUSTRALIA’S biggest companies might soon lose billions in a major shakeup of the Australian carbon price, with the carbon price being phased out in 2021, the Australian Financial Review can reveal.
Key points:The Australian carbon pricing scheme will phase out by 2021The Federal Government is reviewing the way in which it allocates GSTThe Federal government has already announced the end of the carbon pricing system in 2020, but the details of the changes have not yet been releasedThe Government has yet to announce the details about how it will be implementing the change, but analysts are expecting the carbon tax will be phased out by 2022The carbon price is set to phase out at the end in 2021.
“It’s likely the price will be removed in 2021,” said Michael Satterlee, head of equity research at Fitch Ratings.
The plan is the same as in the US, where the tax will end at the same time.
“The tax was a big problem for a long time,” Mr SatterLee said.
“They had to come up with a new system, and they’ve come up against the same problem again.”
That’s probably why the US has ended up with carbon taxes.
“He said the carbon-pricing system had been a “very, very successful system” in the United States, where a number of companies have been able to maintain their business models and profits for the past decade.”
There’s no question that the tax has been a big benefit to them, and there’s no doubt they will continue to benefit,” he said.
Topics:environmental-impact,climate-change,government-and-politics,environmental,business-economics-and,government,business,climate,finance,government—business,jobs,economic-trends,government–organisations,corporate-governance,government—-business-administration,australiaContact Josh McArthur:Josh.