8 Nov 2011

Australian parliament passes carbon tax law

5:42 pm on 8 November 2011

The Australian parliament has passed a law which introduces a carbon tax on the country's top 500 polluting companies.

The law comes into force on 1 July 2012.

Mining firms, airlines, steel makers and energy firms are among those expected to be hardest hit by the tax.

The initial price per tonne of carbon has been set at A$23, which the BBC points out is much higher than other similar schemes such as in the EU where the price is between US$8.70 and US$12.60 a tonne.

Domestic fuel bills are expected to rise as companies pass on the costs to consumers.

Opposition parties argue the tax will result in job losses and raise the cost of living and are promising to repeal the legislation should they take power in the next election, due in 2013.

The government, however, hopes the legislation will force innovation in renewable energy supplies and free Australia from its reliance on fossil fuels.

Australia accounts for only 1.5% of global carbon emissions but, because of its small population, has the highest emissions per head of population in the developed world.