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Australian PM Julia Gillard - Source: Reuters
I've been paying Australian taxes for well over a decade now. And while any fiddling of the numbers by bureaucrats that impact the amount in one's take home pay has always been met with an outcry from those affected, I can't recall such a polarising public debate over policy as the one that is gripping Australia right now.
I was living in Australia when former Prime Minister John Howard introduced GST in 2000 but I believe the carbon tax debate has even surpassed that in terms of the for-and-against reaction.
From July 2012, 500 of Australia's biggest polluting companies will be slugged NZ$29 per tonne of carbon they throw up into the atmosphere with Australia moving to a standard market based Emissions Trading Scheme in 2015.
The scheme is projected to cut 159 million tonnes of carbon pollution from the atmosphere by 2020 - the equivalent of taking 45 million cars off the road.
The Government has promised billions in compensation via tax reform and direct payments to cope with the inevitable cost of living increases passed onto them by affected companies, such as the electricity sector. However, the Opposition claims 60% of households will be worse off or be 'line-ball' and the tax will force industries to shut down claiming thousands of jobs.
The level of anxiety, resentment and anger here over such a political decision is unprecedented in the time that I've been associated with Australia.
Julia Gillard is staking her political future on the very tax she promised would not be introduced under a government she led. She's done so because of pressure from the Greens, the result of a deal done at the last election that allowed Labor to pip the Coalition in the polls.
The Carbon Tax issue brought about the downfall of Ms Gillard's predecessor Kevin Rudd, and before him was certainly a factor in John Howard's demise. It's interesting to note that although Australia is well behind NZ in implementing an ETS, it is well ahead of the world's biggest polluting countries such as the US and China.
It's clear Julia Gillard cannot afford to wait for an election year and go to the polls on the carbon tax issue.
The Prime Minister has promised to 'wear her shoe leather out' explaining the carbon tax benefits to the public and appeasing business.
I have a feeling Ms Gillard will certainly need some decent inner soles.
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Post new commentRedLady said on 2009-05-30 @ 07:36 NZDT: Report abusive post
I prefer the Shankley quote: " Even If Everton were playing down the bottom of my garden, I'd draw the curtains.” Hahah. Great blog and good luck to the Toffees!