The Federal Government admits their Carbon Pollution Reduction Scheme, which includes a target of a 60 percent reduction in current carbon emissions by 2050, will increase inflation, but the cost of not acting would be greater.
“It is about taking responsibility and preparing for the future,” said Climate Change Minister Penny Wong. “We cannot continue to pour carbon pollution into the atmosphere as if there is no cost.”
The scheme includes cutting the excise on fuel to lower the impact on motorists, and Australian households will also receive tax cuts or other financial benefits to offset higher energy costs.
Wong believes the Australian economy is robust enough to cope with the change the scheme will signal, but says the measures are there to help Australian through the initial inflation spike.