No Easy Resolution Of Carbon Tax
BMI View : We had previously highlighted that a coalition victory in the Australian elections was likely to lead to a review and the possible abolishment of the carbon tax, a view that is currently playing out. This is because the abolishment of the carbon tax is one of the main factors driving the party's popularity. That said, we note that this plan to repeal the carbon tax still faces a number of challenges. We also believe that the country is unlikely to meet its emissions reductions target should the carbon tax be abolished.
The Liberal-National coalition was awarded an overwhelming majority in the House of Representatives in the Australian federal elections held on September 7, defeating the ruling Australian Labor Party (ALP) that has held power for six years. This victory means the coalition now holds more than 76 seats in the lower house, giving it sufficient political clout to form a government on its own.
One of the first moves by Prime Minister-elect Tony Abbott was to instruct his department to begin drawing up the legislation to dump the carbon pricing scheme. Mr Abbott's spokesman - and likely minister - for the environment, Greg Hunt, said that scrapping the carbon tax will be the new government's 'first order of business'. The coalition is already piling pressure on the Labor Party to 'honour' the new government's mandate to repeal the carbon tax, with the Australian federal parliament scheduled to resolve the issue once it resumes in late October or early November.
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|Australia - Seat Allocation In House Of Representatives After 2010 (RHS) & 2013 Elections|