Lessons from Australia - Carbon Tax Failure
Australian Carbon Tax Repealed After Two Years (2012-14)
CALGARY, AB: The Canadian Taxpayers Federation (CTF) has launched a cross-country tour with Chris Berg, senior fellow at the Institute of Public Affairs--the think tank that was a leading voice pushing for the repeal of Australia's carbon tax.
Australia's national carbon tax came into effect July 1, 2012, and was repealed on July 17, 2014.
"Australians tried a carbon tax, it didn't work, so they repealed it, and Canadians need to take a close look at that experience," said CTF Federal Director Aaron Wudrick. "Many Canadians are about to feel the impact of a national carbon tax and it's important to find out what to expect and hear it first-hand from a country that has tried it."
Australia produces roughly 1.5 per cent of world greenhouse gas emissions. Canada produces 1.65 per cent.
"Many Australians faced high energy bills and job losses as a result of our carbon tax," said Chris Berg of the Institute of Public Affairs. "The government was forced to create heaps of new bureaucracy, rebates, free carbon credits and red tape just to deal with the fallout from the tax. And worst of all, it did virtually nothing to impact global climate change. Canadians should not follow us down this path."
The IPA estimated that the carbon tax coupled with Australia's other energy regulations pushed up electricity bills by 25 per cent. In 2013, the IPA also estimated the carbon tax was costing Australians $9 billion ($8.89 billion CDN) per year.