Document summary
The Australian Government have announced that the planned carbon price will start at $23/t on 1 July 2012, rising by 2.5% plus inflation before switching to a floating price estimated in FY16. The Government’s plan retains most of the features of its 2009 Carbon Pollution Reduction Scheme proposal, including free permits to trade-exposed firms and electricity generators that will limit the impact on emissions-intensive companies. If the Government’s agreement with Australia’s Green party and key independents holds, legislation is expected to be passed in November 2011.