The Federal Government has confirmed it will scrap the current carbon tax and move to an emissions trading scheme (ETS) next year.On July 14th 2013, Kevin Rudd confirmed that the Federal Government will scrap the existing carbon tax made by the previous Prime Minister Julia Gillard and move to a floating price from 1st July 2014, which means the carbon tax will move from the existing fixed price of $24.15 a tonne to a floating price of $6 to $10 a tonne.
From the aspect of the government, they hope this scheme can reduce the energy bill of residents and relieve other cost-of-living pressures.According to the scheme of Previous Prime Minister, the carbon tax was supposed to be scraped by July 2015.
While from the news released by Kevin Rudd yesterday, the carbon tax will be scraped from 1st July 2014, which is one year in advance.
Kevin Rudd’s cabinet stated that the reason the government made the decision to change the fixed price to ETS rather than to abolish carbon tax was that “it would mean that Australian families have less cost-of-living pressures and it would also mean strong action still on climate change”
You can find more information here: http://www.abc.net.au/news/2013-07-14/federal-government-to-scrap-carbon-tax/4818980.