Federal Government releases carbon tax update
The Federal Government has released an updated model of the impact of the carbon price which states the Australian economy will continue to grow strongly at the same time making reductions in carbon emissions.
The updated modelling shows Treasury expects little to no difference with the previous modelling exercise but includes elements of the Steel Transformation Plan and Jobs and Competitiveness Program which were not included in the initial report in July.
Under the carbon price, the report reveals:
- Real gross national income per person will continue to grow at an average rate of 1.1 per cent to 2050 proving the economy will continue to grow strongly
- National employment is expected to increase by 1.6 million jobs to 2020.
- Incomes are expected to rise by approximately $9,000 in today’s terms by 2020.
- Environmentally, Australia’s domestic emissions under carbon pricing will fall to nearly half of what they would be without carbon pricing by 2050.
- An extra 5 million tonnes in domestic abatement over the first three years due to the higher starting price.
- Manufacturing is expected to grow faster over the period to 2020 as a result of refinements to the Jobs and Competitiveness Program.
- A carbon price placed on fuel used by heavy on-road vehicles from 2014 will cut annual domestic emissions by a further 20 million tonnes in 2050.
- Assist Australia in reaching their pollution reduction targets adding around 0.1 per cent to gross national income in 2050.