Australia to introduce new carbon tax on emissions of diesel fuels | 10 January, 2018 | 12:03:00The State Government will introduce a carbon tax of up to $150 per tonne on diesel fuels in the coming financial year, in an attempt to help the Government meet its carbon emission reduction targets.

The State Cabinet today approved the carbon levy for the first time in three years, in a move that will bring the carbon price under control and cut carbon emissions by a quarter by 2025.

“We’ve worked hard to reduce the number of cars on the road and this tax will be a key part of that,” State Environment Minister Shane Rattenbury said.

The carbon tax is expected to be introduced in the first half of 2021.

The new tax will apply to all diesel fuel vehicles in NSW, Victoria, South Australia and Queensland, with the State Government also aiming to introduce a tax on coal, and other fossil fuels.

The state Government will also introduce a new tax on new cars, including electric cars, vans, trucks and motorcycles.

The levy is expected not to increase for the next three years.

Mr Rattenborough said the Government had invested heavily in reducing greenhouse gas emissions, and had already cut emissions by more than half from 2000 levels.

“I am pleased that we have achieved our goals in reducing emissions and we’re now moving into the next stage,” he said.

“Our carbon price is going down to $110 per ton of CO2 equivalent, which is lower than it was in the last financial year.”

This will save us $3 billion per year.

“It will also provide a great opportunity for businesses and the industry to invest in our clean energy sector.”

Mr Rattlebury said the State had set a goal of achieving zero greenhouse gas pollution from 2025, and hoped to achieve that by 2020.

He said the carbon tax would not increase the State’s carbon pollution, and would instead be a tool to reduce greenhouse gas emission.

“As we move forward with our emissions reduction plans, we are also moving to the next step of achieving the goal of zero greenhouse gases emissions by 2027,” Mr Rattleborough said.

For the first 12 months of 2021, diesel emissions will be capped at a carbon price of $1.40 per ton.

During the first six months of the year, emissions will remain capped at $1 per ton until the carbon pricing mechanism ends.

A new $1 tax will also be introduced on diesel fuel used in transport.

Carbon tax revenue is forecast to be $18.6 million in 2021.

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