Antinuclear

Australia facing $2 billion cost in early closing of carbon price scheme

Early repeal of carbon price scheme could cost government $2bn Financial Review 11 OCT 2013 GEMMA DALEY AND JAMES MASSOLA
The Coalition government could owe companies billions in refunds for freely allocated permits if it repeals the current Carbon Pricing Scheme before 2015, fresh analysis shows.

The early repeal of the scheme could lead to a cash windfall for metals, energy and power stations – the most intensive emitters – as they cash in on freely allocated permits, RepuTex ­analysis said.

“The earliest the carbon tax is likely to be disbanded is the start of October 2014, meaning that companies are likely to be liable for their emissions over the first quarter of the compliance year, but eligible to receive more free permits, which could be sold back to the government before the repeal takes effect,” said RepuTex head of research, Bret Harper. The government could end up with “a bill in excess of $2 billion to cash in nearly 87 million freely ­allocated permits”…..

Mr Harper said the earlier the scheme is disbanded, the higher the cost to government, with more excess permits being sold back by companies.

“If the repeal is held back until April 2015, the cost to government would only be around $138 million, as companies would continue to accrue carbon liabilities through the year, and would therefore have fewer permits to sell back to the government from their free allocation,” said Mr Harper……

MORE DETAIL NEEDED

Australian Chamber of Commerce and Industry chief executive Peter Anderson said business wanted more detail from the federal government about how the Direct Action policy would work…..http://www.afr.com/p/australia2-0/early_repeal_of_carbon_price_scheme_SUY0FQ0LUJReEPyjOkSiJN

October 17, 2013 - Posted by Christina Macpherson | AUSTRALIA - NATIONAL, climate change - global warming, politics