Central to the plan is the introduction of a carbon price mechanism (often referred to as the 'Carbon Tax') along with a significant package of complementary measures and assistance for business and households.
While only around 500 entities are directly impacted, the carbon pricing mechanism and related measures are likely to have a broad and transformative effect on the Australian economy and impact all businesses over time.
The price on carbon commenced on 1 July 2012 making an understanding of the mechanics of this major reform important for all businesses. KPMG in collaboration with the Group of 100 has prepared Managing the commercial implications of a price on carbon to assist business leaders as they guide their organisations successfully through the transition to a low emissions and clean energy future.
- Commencement date of 1 July 2012
- Fixed carbon price for the first 3 years – $23 in Year 1 up to $25.40 in Year 3
- A flexible carbon price will be introduced on 1 July 2015, which will be determined through an emissions trading scheme (ETS)
- Assistance will be provided to businesses and households through a range of mechanisms
- All revenue raised from the sale of carbon permits will be used to encourage investment in clean energy activities and ease the cost burden of transition.