Australian tax update: repeal of the carbon tax — easy come, easy go?

On 15 October 2013, the recently elected federal government released a consultation paper and exposure draft legislation to repeal the carbon pricing mechanism, otherwise known as the Carbon Tax.

The government announced that the Carbon Tax will be repealed effective from 1 July 2014 even if the carbon tax repeal legislation is passed after that date. As the repeal legislation needs to be passed by both the House of Representatives and the Senate, the government will need the support of other parties as the government does not currently have a majority in the Senate.

Further details of the Direct Action Plan, which is the government’s preferred method to reduce pollution, will be developed through the release of a white paper and subsequent consultation process…

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