Some ideas for taxation

Some ideas for taxation and other revenue measures in Australia.

Save $10b per year scrapping fossil fuel subsidies - including $4b per year scrapping diesel fuel excise subsidy for big mining

Save $5b per year scrapping negative gearing subsidies for investors buying houses

We saved $5b per year when Abbott scrapped his Paid  Parental Leave Scheme

Save $31b per year scrapping subsidies for religions.

Tax the proceeds of houses sold for over $2m

Reintroduce a carbon tax. This will raise revenue and provide an incentive for high carbon polluters to reduce their emissions - as happened under the previous carbon tax. Since your government removed it, emissions are again rising. A carbon tax on big companies could generate $5b+ per year and be used to develop clean energy alternatives.

Increase resource taxes on mining so that the companies who extract and sell Australia's non-renewable mineral resources make a fair contribution to Australia.  This could generate $10b+ per year.

Simplify the taxation system for ordinary people.  The current system requires most people to become book keepers and hire accountants to do their tax returns every year.

Remove all direct and indirect government subsidies for the logging of native forests.

Senator Kim Carr happily subsidises fossil fuel but not electric vehicles

It is very disappointing that the Australian Government continues to provide massive subsidies for fossil fuels - around $9 billion per year - while Senator Kim Carr has ruled out any subsidies for electric vehicles.

From the Sydney Morning Herald:

The federal government instead believes the future of the car industry lies in the development of existing technology across petrol, diesel and LPG engines.

''It's not our intention to run programs to support any particular form of technology,'' Minister for Innovation, Industry, Science and Research Kim Carr said.

This is yet another example of the failure of the Australian Government and our elected representatives to provide leadership towards a low carbon future.

Electric vehicles can reduce our carbon emissions if they replace fossil fuel powered vehicles, and they can achieve zero emissions when the source of electricity for recharging them is 100% renewable energy.

This is also a missed opportunity to develop an electric vehicle that could be exported around the world.  China, France, Japan, the United States, Germany, Korea and India are all building electric vehicles.

Kim Carr's so called "green car fund" spends $1billion of Australian taxpayers money on very dubious projects such as a "green 6 cyclinder motor" (Ford Australia).

Not surprisingly, the oil companies in Australia regard their profits from fossil fuels to be "safe for 10 years".

Kim, the government should subside the development of low emissions technologies.  You should also remove all subsidies on fossil fuel use.

Remove $8.9 billion fossil fuel subsidies to combat climate change

Environment Minister Malcolm Turnbull's announcement that all incandescent light bulbs will be banned in Australia from 2009-10 is a step in the right direction and is long overdue. However, we need to do much more than this.

The real problem is that electricity produced in Australia from fossil fuel such as coal is subsidised to the tune of an astounding $8.9 billion, so it is far too cheap. If these subsidies were removed, and a carbon tax applied to polluting energy producers, then renewable energy would successfully compete and the free market would steer us in the right direction of reducing greenhouse gas emissions.

This would also provide strong incentives for Australian manufacturers to produce energy efficient appliances that would be competitive in export markets. Australian appliances are lagging global standards on power consumption because electrical power is so cheap in Australia. Currently, if you want a really energy efficient fridge or dishwasher you have to buy one from a European country such as Germany or Sweden.

With renewable energy on a competitive footing, and demand for electricity greatly reduced through the use of more energy efficient appliances, we would avoid building new coal-fired power stations or going down the non-renewable and dangerous nuclear path favoured by John Howard.

It is time for our politicians to display some real leadership on climate change before we reach the looming crisis point.

Overall, this would be cheaper than funding projects across Australia such as building a barrage across the Port Phillip Bay Heads to stop rising seawater levels flooding Melbourne’s bayside regions.

Some further information:

• Canberra sees the light on energy-saving globes The Age
• Hazelwood is the dirtiest power station in Australia and the most polluting power station in the industrialised world (based on CO₂ per megawatt hour sent out)
• Australia is the largest coal exporter in the world, exporting 247.6 million tonnes in 2004, which was more than twice the amount of any other country.
• Research paper on coal subsidies (PDF) which details the scandal of the century.