Labor's Electricity Tax

Labor wants to raise Australia’s emissions reduction target to 45% – far beyond our international commitment of 26-28%.

This would require Australia to go far beyond the rest of the world.

Bill Shorten also wants to replicate South Australian Labor’s 50% renewables target on a national level.

Labor’s policies would mean higher power prices and a less reliable system.

They would cause a massive hit to our economy and cost local jobs.

And Labor’s policies would spend $35 billion on foreign carbon credits.

According to modelling by Dr Brian Fisher (former head of the Australian Bureau of Agriculture and Resource Economics, and lead author on three reports of the UN’s Intergovernmental Panel on Climate Change), Labor’s policies could mean by 2030:

  • 58% higher wholesale electricity prices.
  • Lower annual GDP - from 2.9% to 2.3%.
  • $472 billion cumulative hit to economy.
  • 336,000 fewer jobs.
  • $9,000 per year lower wages, on average.

Labor’s true thinking was revealed by its Environment Action Network, which said: “high prices are not a market failure – they are proof of the market working well.”

FACTS

"The emissions target of 26% is appropriate and achievable. 45% is an economy wrecking target." - Business Council of Australia, Twitter, 26/6/2018

"To pre-emptively increase Australia's target... could jeopardise Australia's future economic growth." - Business Council of Australia Consultation Paper 2016