The Hon. Greg Hunt MP
Minister for the Environment
Time to scrap the anti-WA carbon tax
11 March 2014
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The carbon tax is causing enormous damage and inflicting massive pain in Western Australia.
In its first year of operation the carbon tax was a $627 million direct hit on Western Australia.
West Australian power companies paid around $260 million. The Electricity Generation Corporation has been slugged around $200 million and Bluewaters power stations have been slugged $60 million. That’s pushing up power bills for families.
Australia’s manufacturing industry has been hit with a bill of at least $1.1 billion, the mining sector a bill of $530 million and oil and gas extraction a bill of $450 million.
Western Australia’s mining industry is being sent huge carbon tax bills. Some of those hit the hardest in 2012-13 include:
- Woodside Energy - $172 million
- BHP Worsley Alumina - $56 million
- BHP Burrup - $55 million
- Yara Pilbara - $35 million
Australia’s major mining competitors don’t pay a carbon tax - so our global competitiveness is being damaged.
The carbon tax also hits off road diesel use and airlines. That means diesel used in generation on mining and manufacturing sites is charged the carbon tax.
Across Australia this is estimated to have cost 75,000 entities around $700 million in 2012-13 in higher diesel costs. In addition, Qantas and Virgin have been hit with bills of $106 million and $48 million respectively in 2012-13.
The West Australian Government has previously estimated that “the cost to state Government agencies from the carbon tax would be around $50 million.”
Western Australia’s schools are paying the carbon tax. West Australia’s hospitals are paying the carbon tax. The list goes on.
Scrapping the carbon tax will deliver relief to families in Western Australia and across the country. Households are forecast to be around $550 a year better off, on average. Power bills are forecast to fall around 9%.
Labor isn’t interested in getting rid of the carbon tax. Western Australia deserves better.
If Labor had its way the carbon tax would be broadened to apply to trucks and buses. That was forecast to be a further $510 million hit in 2014-15.
Only the Coalition is committed to getting rid of the carbon tax to deliver much needed relief to families and business.