The proposed carbon tax in Australia: impacts on income distribution, employment and competitiveness
Paper
Paper/Presentation Title | The proposed carbon tax in Australia: impacts on income distribution, employment and competitiveness |
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Presentation Type | Paper |
Authors | |
Author | Rahman, Mohammad Mafizur |
Journal or Proceedings Title | Proceedings of the International Conference on Income Distribution Theory and Policy |
Number of Pages | 12 |
Year | 2011 |
Place of Publication | Wuhan, China |
Web Address (URL) of Paper | http://csxy.znufe.edu.cn/en/trans.aspx?id=439 |
Conference/Event | International Conference on Income Distribution Theory and Policy (2011) |
Event Details | International Conference on Income Distribution Theory and Policy (2011) Event Date 15 to end of 16 Oct 2011 Event Location Wuhan, China |
Abstract | The proposed carbon tax in Australia, which is scheduled to be implemented from 1 July 2012, has become a controversial issue to the policy makers and people regarding its potential effects on the economy and society. Therefore, this paper analyses the various effects of the carbon tax with particular attention on Australian income distribution, employment and international competitiveness. The carbon tax will increase the inequality between the poor and the rich, as the poor will be adversely affected because of increased price of almost all essential items even in the presence of the government support program; regional disparity is also likely to increase. Employment will be reduced especially in coal, mining, steel, automotive and other manufacturing industries which will cause the shrinkage of GDP. The international competitiveness of Australian industries will also be reduced, as these industries will suffer because of higher production cost compared to foreign competitors. Some policy options such as reduction of VAT, a tax free allowance for essential use of energy, a lower carbon tax rate, border tax adjustments, permanent financial support to the poor may be considered to reduce the regressive effects. |
Keywords | carbon tax, income distribution, employment, competitiveness, Australia |
ANZSRC Field of Research 2020 | 380115. Public economics - taxation and revenue |
Public Notes | No indication of copyright restrictions. URL added 30/5/12. Name changed to Int.Seminar on...HH |
Byline Affiliations | School of Accounting, Economics and Finance |
Institution of Origin | University of Southern Queensland |
https://research.usq.edu.au/item/q12z8/the-proposed-carbon-tax-in-australia-impacts-on-income-distribution-employment-and-competitiveness
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