Carbon Price

Carbon tax abolished 1 July 2014

The carbon tax was established in law through a package of Acts of Parliament. Removing the carbon tax required repealing these Acts through the carbon tax repeal legislation.

The carbon tax repeal legislation received the Royal Assent on 17 July 2014 and the bills as part of this package are now law, with effect from 1 July 2014.

No new carbon tax liabilities will be incurred from 1 July 2014. This approach gives certainty to small businesses by making it very clear when the carbon tax ended.

Effects on small business?

Carbon tax liabilities incurred up to 30 June 2014 must still be met in full. Carbon tax liability reporting for 2013-14 will need to follow the process and timeframes set out in the carbon tax legislation.

Carbon tax related industry assistance measures are no longer required now that the carbon tax has been repealed.

The Jobs and Competitiveness Program will be discontinued with effect from 1 July 2014 as part of the repeal of the carbon pricing mechanism. This will mean that applications under the Jobs and Competitiveness Program for the 2014-15 financial year that have already been received by the Clean Energy Regulator will not be considered and applicants will be advised accordingly.

Retail electricity should fall by around 9 per cent and retail gas prices by around 7 per cent than they would otherwise be in 2014-15 with a $25.40 carbon tax.

Reduction in red tape by the removal of over 1,000 pages of primary and subordinate legislation.

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Carbon price legislation and regulations

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