back to article Aussie carbon tax in actually-makes-sense shocker

So Oz has finally announced the details of its carbon tax plan, and actually, compared to the normal dogs' dinners that come out of the political process, it's not all that bad. Must be something to do with the way that the Green Party only gets to influence it rather than actually write it. emissions For those who want the …

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    1. bamalam

      Keynes is not the villain

      Keynes is not what is caused recent damage. It was the laissez-faire capitalism of deregulation and cheap money that caused Lehman Bros. etc. We as tax payers are bailing out banks and the likes of AIG to the tune of Billions.

      1. John Angelico
        FAIL

        Sorry, bamalam but

        ...you are not aware that the capitalists had their arms twisted by governments (see Clinton) to grant housing loans to people who would otherwise not qualify - they were deficient in one or more of the 3 Cs: Character (thriftiness etc), Capacity (to pay back the loan), and Collateral (houses of poor value).

        It was not a failure of free market capitalism, but the chickens coming home to roost after market-distorting government interference.

      2. Anonymous Coward
        Headmaster

        This time it's not different

        Read the book.

        Bankers behave consistently ... they know no other way.

    2. John Angelico
      FAIL

      Fizackly, Ivan4!!

      "he was Prof of Economics at Cambridge and the man who got Keynes into the subject."

      That should disqualify him immediately.

    3. PyLETS
      Headmaster

      @Ivan 4: Have you ever read Keynes' books ?

      If you had, it's extremely unlikely you'd be blaming him for the financial crisis. If you'd read Keynes very carefully you probably wouldn't be blaming him for the problems resulting from governments spending their way out of this deflationary banking crisis either, because he was arguing in 1936 _against_ continued monetary expansion at a similar point in the cycle to now. (Hint: he was the only knowledgeable person arguing _for_ public-financed monetary expansion following the deflationary 1929 stock market crash). If he did ever write anything similar to what you are alleging about tax policy please quote from which of his writings you are referring to. I'm concerned because having read his books I don't recall him saying anything about tax policy in relation to upon whom taxes should fall, and I think under the circumstances I would have noticed if he had written anything about this.

      If you haven't read Keynes' books, as seems very likely, then why should anyone care what you imagine him to be responsible for ?

  1. Mike VandeVelde
    Megaphone

    Tim Worstall

    Do you think the carbon tax we have here in British Columbia is different in some substantial way? Or did you just not know about it?

    http://www.livesmartbc.ca/government/carbon_tax.html

    http://ca.news.yahoo.com/blogs/canada-politics/b-c-carbon-tax-successful-other-provinces-worry-195524669.html

    http://www.theglobeandmail.com/report-on-business/bc-finds-success-with-controversial-carbon-tax/article2084989/

    http://www.metronews.ca/halifax/life/article/905211--b-c-carbon-tax-reaches-3rd-anniversary--page0

    1. Tim Worstal

      Didn't know about it

      But it looks, from a quick glance, to be rather good. Starting low and then rising radually, that looks like the Nordhaus idea, rather than the Stern.

      No, I don't know all the rest of the bakground, but that first page on the general description makes it look very sensible.

  2. Anonymous Coward
    Stop

    The ones who will be hit hardest with this

    are in fact the low-income renters. You see, you can offset your electric bill by installing solar panels - IF you own your house. This means that wealthy homeowners (and believe me if you own a house in this fucking country you are *wealthy*, no matter how much the middle-class yuppies cry poor) are the only ones who can get all the benefits.

    Those who are renting, on the other hand, will be forced to subsidise the fat rich homeowners' solar panels with massively increased electric bills. Why? Because no landlord (read: fat rich homeowner) will install solar panels on a rented property because he/she gets nothing back from the investment. So while the electric companies hike the bills to cover the carbon tax and to compensate for the fat bastards with solar panels who don't pay for electricity any more, it'll be the renters who have to foot the difference. That's right, the ones who can least afford it.

    The Gillard government needs to tax landlords who refuse to install solar panels on rented properties to solve this problem. Make it cost the landlords more money to not have solar panels than to put them on all rented properties. Then we'll see some fair distribution of the carbon tax and its flow-on effects.

    1. Anonymous Coward
      Anonymous Coward

      Good point (as a renter myself*, I am likely biassed, though)

      Heck, before even worrying about PV, I'd like to know what just forcing solar hot water systems for every rented place would do to the nation's electricity needs. Even if it was implemented as a switch-when-replacing-existing-unit, so the costs could be spread out over a decade-or-so.

      Technically, I have (just) enough income to buy in now, but at present local prices it cheaper to keep renting and making 6.1% on my savings (rather give rent to the landlord, than same in interest to the bank, at least the former can pass as a human being).

    2. drengur
      Headmaster

      Despite the vitriol....

      Taxing landlords who don't improve properties is not a terrible idea. The amount of places that I've rented that had bled electricity... horrible old water heaters and horribly inefficient lighting has cost me thousands and currently there is no value in doing it to a landlord. Whats more, most are so broke from their two mortgages that they can't afford to fix anything else.

      I would love to see more disincentives to owning more than one property and finally pop this house price bubble.

      1. Adrian Esdaile
        Headmaster

        Too bloody right! Minimum upkeep standards NOW!

        " Whats more, most are so broke from their two mortgages that they can't afford to fix anything else."

        Yeah, but they can claim EVERY BLOODY CENT THEY SPEND ON UPKEEP OFF THEIR TAX!

        Sorry, I had to shout that bit, because it's the thing that every bloody landlord I've ever had seems too not be aware of.

        ANY landlord (especially in Sydney) that whines about how poor they are can cry me a fucking river, and spend a couple of months in one of their fellow rich bastards properties, paying enormous rents and see how they like it.

        Face it; if you own property in Sydney YOU ARE RICH make no mistake about it, "mortage stress" or not.

    3. VoodooForce
      Childcatcher

      dude did you miss the bit

      about low income earners, whether they be renters or not, getting tax breaks to cover the rise in electricity costs? I agree in part with what your saying but have a look at the bigger picture.

      1. Anonymous Coward
        Anonymous Coward

        Heh.

        My appartment block changes hands as quickly as it takes each successive landlord to realise they over-paid for it. The landlord before last did most of his own minor maintenance (in a timely manner) so I got to know him a bit. As I said to him, with $15k I cound turn the dump into a really nice place, but as a tennant I certainly wasn't going to spend that sort of dosh on something I didn't own, and as a non-live-in owner, he certainly wasn't going to just so some future tennant could trash it, or simply let it degrade back to dump-state.

        I know when they started charging real-costs for water around here, they suddenly saved the need for three new major dams/dam-upgrades when people stopped wasting the stuff! I wonder how many new/upgraded power stations could be saved by making rental properties efficient and if a chunk of this fore-saved money could subsidise landlords in the efficiency upgrading?

        Then again, the last time the numpties we choose to have govern us decided to subsidise this sort of thing for live-in owners it was a real pigs ear, so do I really trust them to do it right? :-(

    4. Adrian Esdaile
      Holmes

      EXACTLY!

      "The Gillard government needs to tax landlords who refuse to install solar panels on rented properties to solve this problem. Make it cost the landlords more money to not have solar panels than to put them on all rented properties. Then we'll see some fair distribution of the carbon tax and its flow-on effects."

      Ah, yes, it will do all of that, but it will also draw votes away from the Labor party.

      Let's not forget that the MOST important thing here is NOT tax, NOT the environment, NOT carbon emissions, NOT global [cooling|warming|climate change|climate stays the same];

      the most important thing is VOTES VOTES VOTES.

      Never forget that when dealing with any democracy, especially Australia.

      BTW, lovely to see some decent debate here on el Reg!

  3. Anonymous Coward
    Devil

    Julia could always spin it well

    If she ever makes it through the next election, the pork barrelling the one after will be insane.

    As time goes by who expects Canberra to return all that is raised?

    It always amuses me how a Labour government always ends up helping big business more, and strangling small bussiness. The middle class is their target demographic, gotta get rid of them!!! They're those pesky people who might vote Liberal

    1. Mark 65

      Gillard

      The Antipodean Blair?

      1. Anonymous Coward
        Anonymous Coward

        Gillard

        I am sure she is a lovely person, and a capable politician. But her accent just really grates - I have to switch over when she starts.

      2. Steven Roper
        Thumb Up

        @Mark 65

        Gillard is more like the Antipodean Brown. Howard was the Antipodean Bliar. ;)

  4. itzman

    ok..but

    carbon tax is a good feed-forward element to encourage away from fossil fuel, IF it were given back to those who are most affected.

    As it is its all cash and grab, and of course spend on renewable energy that no one wants or needs

  5. Concrete Gannet
    Thumb Up

    Tax free threshold increase decades overdue

    The reg reporter has latched on to the significant thing that the mainstream press in Australia seems to have missed.

    The tax free threshold was an egregious fault in our system. It has been a third of what it should be. Fixing it will mean a million low income earners will no longer have to pay tax at all, and will have flow on benefits in simplifying their lives and removing poverty traps, increasing their incentive to find employment. It should have happened years ago, but it costs serious money.

    If it takes a new tax on polluters to fund it, I'm in favour.

    1. veti Silver badge

      Not quite

      At $18000, the tax-free threshold will still be too low to "remove poverty traps". To do that, you'd have to load the displaced tax onto the higher-tier tax rates rather than the lower-tier ones, as the gov't is doing.

      In general, the poverty trap is *caused by* progressive taxation, so the way to eliminate it is to make taxation *less* progressive, not more. The purpose of a tax-free band is to simplify tax collection and record-keeping - if some kid is only earning $60 a week from his paper round or whatever, it's not really worth the time and effort it'll take to collect $9 of it from him. And raising the limit will help with that.

      1. Anonymous Coward
        Go

        Yes, I imagine the $18k figure wasn't arbitrary.

        The tax man sat down and worked out how much it cost to propess a normal income tax claim and came up with a figure just south of $2k, then multiplied back.

        Which is great, btw. I can think of plenty of things I would rather the govt. be doing with that $1.9k than blowing it extracting $516.90 out of some poor sod getting by on minimum wage!

    2. Anonymous Coward
      Thumb Up

      Hmmm

      CO2 != Pollution

      Increased tax-free base = good

      I should have preferred that the pointless pandering to the Greens by couching this legislation as somehow "green" were avoided.

      Let's face it, if Australia disappeared from the planet tomorrow along with all its industry, people etc, the reduction in global CO2 output would not be measurable and certainly would be without any discerable effect on the climate - even if you believe the AGW crock-o-shit.

      Dweeb

      ps: You get a thumbs up, despite the gratuitous last line.

  6. Mark Simon

    Sleight of Hand

    By that logic, high taxes on cigarettes, alcohol and fuel should decrease consumption. As far as I can tell, they don’t; they maek life more expensive, increase government revenue and give them the opportunilty to say that they’re doing some thing good.

  7. David Hicks

    As a high earning single geek

    With a car and no property, this barely affects me or my finances at all as far as I can tell.

    Why all the fuss?

    1. Grumpy Old Fart
      FAIL

      same situation, different result

      Well, this adds a few thousand more pointless Canberran envirocrats to the bureaucracy your taxes support for one. Another vast unaccountable faceless government agency who will require forms in triplicate whenever anyone tries to do anything productive, and who will close a business without hesitation from a single unjustified complaint. We're drowning in red tape already and now there's more.

      For two, if you base your opinion on every single government policy on purely how much it affects your wallet at this point in your life, then you deserve the godawful pollies you get. Get a bigger picture.

      For three, we're committing vast amounts of money to produce exactly zero effect on any CO2 emissions, let alone the climate itself. There are lots and lots of much better uses for this money than attempting to ameliorate less than a hundredth of a degree of warming (even if the worst, most dire predictions of the climate models are right).

  8. Dodgy Geezer Silver badge
    Thumb Down

    Why do people miss the whole point...

    ...which is that CO2 is NOT a polutant, and does NOT cause Global Warming?

    This makes the whole basis for the tax into a big lie. And it really IS important that leaders tell the truth - it sets the tone for the whole of society. If, as el Reg seems to have done, you just don't care about whether something is true or not, you are encouraging the huge drop in public morality that we have seen over the past twenty years.

    Oh, and also, this is a tax on ANY kind of activity. If this is accepted, then it is accepted that governments no longer need to justify any tax at all - they can effectively say: "You're alive, so pay me your money!"

    Is that what you want? Cos that's what'll happen.....

    1. Anonymous Coward
      Anonymous Coward

      co2

      "which is that CO2 is NOT a polutant, and does NOT cause Global Warming?"

      It does cause global warming and so then it can be described as a pollutant.

      1. Philip Lewis
        Thumb Down

        Errr. No, you numpty.

        CO2 is an essentially harmless trace gas, naturally occurring in the Earth's environment. It also happens to be an ESSENTIAL component for life on this planet. Without CO2 in the atmosphere we are dead. Please re-read that last bit several times until you get it.

        pollutant [puh-loot-nt]

        "any substance, as certain chemicals or waste products, that renders the air, soil, water, or other natural resource harmful or unsuitable for a specific purpose."

        The suitability of "air" for it's specific purpose (which I would posit is the sustaining of life on the planet) is not enhanced by CO2's elimination or reduction.

        Numpiess like you should be sent to remedial schooling, along with everyone else who thinks that CO2 is a pollutant in any real or linguistic sense.

        Philip

        1. NomNomNom

          strawman

          you ignore the radiative effects of the CO2, and it's effects on ocean pH.

          This is a bit like ignoring the bad effects of raw sewage and arguing that raw sewage is fertilizer == life == great for dumping into rivers.

    2. Anonymous Coward
      Anonymous Coward

      @Dodgy Geezer

      "CO2 is NOT a polutant, and does NOT cause Global Warming?"

      For the first I would need some very clever convincing that CO2 is not a pollutant - only about a1% concentration of CO2 is enough to cause serious health problems: http://wasg.iinet.net.au/Co2paper.html

      As for the second, even those of us who are firmly in the skeptic camp accept that CO2 is a greenhouse gas and that greenhouse gasses are responsible for a rise in global temperatures of something like 20-30C over what it would be otherwise (what we disagree about is whether human activities are affecting the effect, whether we can do anything about it, whether the steps needed to do anything about it are actually worthwhile and whether there is actually any change from the natural cycle, amongst others)

      see: http://news.bbc.co.uk/1/shared/spl/hi/sci_nat/04/climate_change/html/greenhouse.stm

      which states: "The greenhouse effect is the natural process by which the atmosphere traps some of the Sun's energy, warming the Earth enough to support life" Which seems reasonable to me - failing that just take a look at Venus for a spectacular example of greenhouse gasses at work..

      1. Bernd Felsche
        Flame

        Serious arithmetic problem

        "only about a1% concentration of CO2 is enough to cause serious health problems"

        The site says: "Symptoms may begin to occur, such as feeling hot and clammy, lack of attention to details, fatigue, anxiety, clumsiness and loss of energy, which is commonly first noticed as a weakness in the knees (jelly legs)." for 1%. Serious health problems? Symptoms are like having 2 pints of beer in half an hour.

        Current CO2 levels are "officially" at about 390 ppm; much, much less than the 10,000 ppm that is 1%.

        Venus is hot at the surface in part because the pressure at the surface of the planet is about 90 times that of what we have on our planet. At the altitude where the pressure is about 1 Bar - one Earth atmosphere, Venus' atmosphere is only slightly warmer than Earth. The rest of the temperature difference is due to proximity to the sun and very slow, retrograde rotation of the planet - it turns, very, very slowly - backwards wrt other planets, with its "day" longer than its year.

        The "greenhouse effect" has no foundation in fact. Heat is not "trapped". CO2 doesn't form a "blanket" or a barrier to outbound radiation.

        Although CO2 absorbs IR radiation, it re-radiates it very quivckly at altitude, and below about 6000 metres above the surface, the incoming IR transforms morereadily to kinetic temperature; which can transfer to surrounding molecules of vastly more O2 and N2. CO2's rate of expansion with heating is greater than that of the rest of dry air, so its bouyant action encourages natural convection, increasing the rate of heat transfer.

        The higher density of CO2 compared to the rest of dry air tends to concentrate the trace of gas that is CO2 to near the surface; i.e. where it's absorbtion properties tend to promote convection and convective cooling of the surface by displaced ("falling", cold) air coming in contact with the warm surface. One would be able to observe that effect in the real world were the concentrations of the gas not so small that any attempt to measure it is lost in the noise of measurement.

  9. John Smith 19 Gold badge
    Happy

    "Welsh woman turned colonial"

    I think you missed ginger as well in that.

    1. Tim Worstal

      No

      I didn't miss it, no, was in the original. The subeditor thought that it should be missed though......

  10. Ken Hagan Gold badge

    Nice idea, but woeful implementation

    So the plan is to ask every medium-to-large company in Oz to estimate their carbon footprint so that the government can work out how much to tax them? Good luck with that.

    What they should have done is followed the principle through. Tax those those import fossil carbon or who extract it locally. That's a *far* lower number of people to keep an eye on and since their whole line of business already revolves around knowing how much they import/extract, there won't be any problems with checking the figures.

    You still get the benefits of internalising the cost of carbon, but you've moved along the food chain to where it is (much) easier to measure. For one thing, you've immediately solved the problem of how to account for biofuels, or for electricity that *might* have been generated by clean methods. Such things don't show up at the dockside or mine and so don't get taxed.

  11. John Burton

    Yeah right

    Good grief there are still people out there who believe in this global warming / CO2 thing?

    1. Anonymous Coward
      Coat

      Yeah

      seems the news hasn't trickled down under yet.

      There has been no warming, thanks to the Chinese burning lots of coal. So maybe this proposal has worked already before it even begins?

    2. Anonymous Coward
      Anonymous Coward

      97%

      Yeah like 97% of scientists who research the issue

      1. Anonymous Coward
        Pint

        80% of statistics are made up on the spot

        As a working scientist, I can tell you that it is categorically untrue that 97% of scientists think that AGW is a fact, or that human CO2 emmisions are a pollutant.

        There are a large number of "climate scientists" whose belief in AGW is a prerequisite for their funding, who believe in AGW to a greater or lesser extent. There are also a large number of scientists in the same and also related fields (particularly the hard sciences) who have spent considerable effort rebutting the poor "science" coming from the "climate science" community.

        This is how science works.

        Eventually the physicists will figure out how clouds work, and since clouds contribute about 95% of the issue, we will then be in a better position to actually model something that can be measured against solid science, rather than dodgy data.

        http://public.web.cern.ch/public/en/research/CLOUD-en.html

        Anonymous, obviously

        1. NomNomNom

          so far

          We've had decades of research and experts on the issue are convinced human CO2 emissions will warm the Earth

          Acting suprised that people believe CO2 emissions will warm the planet is bizzare given that's what science is telling us.

  12. Herby

    ALL sources of CO2...

    ...should be taxed alike. Including the CO2 that the human body produces.

    Oh, but that would tax everybody. There is a solution, though. It was thought of by Swift a long time ago. He called it a "Modest Proposal".

    I'll let others look the reference up.

    1. A J Stiles
      FAIL

      No they shouldn't

      The carbon in the CO2 in your breath was extracted from the atmosphere by plants about one growing season ago.

      The carbon in the CO2 in fossil fuel emissions was extracted from the atmosphere by plants millions of years ago, and was completely out of the cycle until recently.

      Learn some O-level chemistry, will you?

      1. -tim

        CO2 Cycle Downunder?

        The carbon cycle here is tied very closely to the water cycle. During ice ages and points of high seas, large amounts of the current Aussie desert are covered by largish lakes. Those lakes provide the source for the rain that falls in what is now green areas. When that water goes away at stages between the ice age events, the tress die too. The areas around here turn to desert and about 230 Tons of CO2 per acre are moved from plants to the the atmosphere. If we don't actively flood some of these lakes, the long term drought will get much worse but we do have the ability to store massive amounts of climate if we are willing to flood some salt plains.

  13. Anonymous Coward
    Alert

    Danger Will Robinson!

    <b>Because the carbon price raises revenue, it provides an opportunity to cut other taxes.</b>

    Yikes. Beware. It doesn't work like that.

    There are two types of taxes: (1) to collect revenue. (2) To change behaviour. Don't confuse them.

    Otherwise, If you actually succeed in changing behaviour then all your revenue disappears ...

    We've had this in Ireland with motor vehicle taxes. They moved from being engine-capacity based to CO2-based. Everyone moved to buying low-tax rate cars and the tax base melted.

    Secondly, if the aim is to change behaviour, then you keep raising the tax until it hurts, and people don't do that anymore. If you do behaviour-changing taxes like carbon taxes you need to be honest about it. It will hurt; its meant to, and we're not going to make it small so that "you won't notice", 'cos that would be to miss the point. Instead spend the money from the tax on helping the poor who don't have a choice : spend carbon tax money on retrofitting the houses of the poor, etc.

  14. This post has been deleted by its author

    1. Anonymous Coward
      Anonymous Coward

      Tax revenue

      The government can do one of two things with additional tax revenue:

      - More stuff*

      - Cut other taxes/increase welfare payments

      It's the "cut other taxes" option to which Mr Worstall is referring.

      If the government were to distribute all the additional tax back appropriately across business and the public, the end result is that companies and public who become more energy efficient can benefit and those who don't lose out.

      Carbon taxation should actually be really fucking simple, which is why Mr Worstall gets so bent out of shape about how complicated politicians end up making things.

      Tax energy: + lots_of_taxes

      Cut income taxes: -

      * The stuff is often stuffing money into their and their friends' pockets.

  15. George 24

    Simple maths

    Oz gvt will give back 50% of the tax to ordinary Aussies. Since there is no way businesses will absorb the other half, it leaves the compensation around 50% short.

    So cut the political crap and just admit it will cost us to clean the air.

  16. Matthew 17

    Not as scary as the CRC

    The UK's Carbon Reduction Commitment which has been slowly bubbling under the radar of most people is a hugely scary creature that will cost companies and people an absolute fortune. The company I work for has a lovely £60K tax bill next year to look forward to (this is on top of all other climate levies we have to pay on our energy). The efficiency of a company is determined by it's energy usage divided by its turnover, but doesn't take into consideration what the business-type is. Data Centres are going to get walloped

  17. Nigel 11
    Thumb Down

    Outsourcing CO2 emissions

    The obvious problem I see is that the CO2 tax will encourage energy-intensive manufacturing to be outsourced and finished product to be imported. The net result will be a loss of jobs locally, and even higher global CO2 emissions because of the extra shipping involved.

    Adding a CO2-emissions linked import tax would be a bureaucratic hightmare to administer, and would provide an incentive to further relocate manufacturing from a trustworthy regime to one where they'll work dirty and declare greenest.

    Reluctantly, thumbs-down.

  18. Anonymous Coward
    Anonymous Coward

    (untitled)

    It's not so much that I don't think that CO2 emissions are a problem, I am just highly skeptical at any claim that tax is the solution. I tend to think that it's more of a case of looking for an excuse for a tax, to make it accepted by the public. If CO2 emissions are a problem then legislate for them properly. To replenish the public kitty then citizens should pay according to how much wealth they were fortunate enough to attract. Manipulating behaviour is not the job of taxation.

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