“Make no mistake, Labor’s ‘safeguard mechanism’ is nothing more than a carbon tax that will bludgeon regional communities, and level industries critical to Australia’s prosperity and national security,” said Daniel Wild, Deputy Executive Director of the Institute of Public Affairs.
IPA analysis reported today in The Australian, shows under the ‘safeguard mechanism’ Australia’s 215 top emitting facilities will have a carbon tax cap and trade system imposed upon them. Should they emit above the cap, they must trade carbon credits or pay the government.
“The proposed reforms to the ‘safeguard mechanism’ will tax largely regional-based industries into oblivion and is all part of the failed policy of net zero. Prior to the election, the Albanese Government promised not to destroy jobs, these reforms have broken that commitment.” said Mr Wild.
Analysis undertaken by the Institute of Public Affairs on the most recent ‘safeguard mechanism’ data available from the Clean Energy Regulator has revealed:
- 84% of the 215 facilities targeted by the ‘safeguard mechanism’ are located in regional communities.
- 88% of the 215 facilities are in sectors critical to Australia’s economic prosperity and national security, by industry;
- 48% are in Coal, Gas, or Oil
- 28% are in Other Mining, and
- 12% are in Manufacturing.
“Once again, net zero policies designed and driven by political and inner-city elites will disproportionately affect the livelihoods of regional Australians,” said Mr Wild.
“This policy will destroy the future of so many regional workers. The ‘safeguard mechanism’ is a nasty, sneaky tax on regional Australians, plain and simple.”
Worse still, the Greens’ demands to ban all future coal and gas projects in Australia, as a condition of waving the ‘safeguard mechanism’ through parliament, means lights out for Australia.
IPA research has identified these demands would:
- Cancel 86 coal and gas projects currently in the construction pipeline.
- Cancel 473,000 jobs located in regional Australia.
- Destroy $268.5 billion in direct and indirect economic activity.
“The Greens, pushing niche issues and representing the radical left fringe, have issued at $268 billion ransom note to the Albanese Government, and again, it will be mainstream Australians who will pay the price through lost jobs and higher energy costs,” said Mr Wild.
“Our resources sector is the absolute backbone of prosperity across Australia and does all the wealth creation heavy lifting, but the Federal Government has put a target on their back and handed the Greens a loaded gun.”
The IPA’s submission to the Senate Standing Committees on Environment and Communications can be found here.
To download the IPA’s research on the cost of ending coal and gas click here.