Oz Carbon tax is history

Australia yesterday became the first country in the world to abolish a price on carbon, with the Senate passing the government's repeal bills 39 votes to 32. After two weeks of negotiations, and several false starts, the Abbott government achieved its long-held ambition to axe the tax, to applause from government senators.

The unpopular tax was introduced by former Labour Prime Minister Julia Gillard; Labour was trounced in the 2013 federal elections and many commentators blamed the carbon tax for Labour's loss.

National Farmers Federation (NFF) president Brent Finlay says it has not supported the carbon tax due to the unnecessary cost impost on Australian farm businesses, agricultural input suppliers and food processors.

"Australian agriculture is breathing a sigh of relief now the tax has finally been abolished. The sector itself was excluded from directly paying the tax. However, costs imposed on other businesses were passed on to agriculture and the bottom line of farm businesses," says Finlay.

"Carbon tax flow-on costs hit Australian farmers every time they paid for essential electricity, fertiliser, chemical and fuel supplies. Rather than promoting Australian farm competitiveness, the tax dampened the sector's efforts to grow and increase productivity.

"Australian agriculture already plays a crucial role in reducing emissions. To enable our sector to continue to play this role—and remain viable at the same time—the right policy settings must be in place," says Finlay.

The NFF calls on the Government to institute effective pathways for agriculture to participate in the Emissions Reduction Fund. This should be accompanied by a firm commitment to invest in research and development, in order to develop and convert carbon science and methodologies into practical and feasible on-farm action.

"The NFF commends the Coalition Government on its pursuit of the carbon tax repeal since its first week in office. We urge the new Senate to prioritise business certainty when deliberating on key legislative initiatives, including those that deliver on the Government's election commitments," says Finlay.