According to the Government's media release dated 10 July 2011, the price of carbon will be $23 for each tonne of pollution beginning on 1 July 2012. The price will rise by 2.5% a year until 1 July 2015 and then this mechanism will transition to an emissions trading scheme where the price will be determined by the market.
Approximately 500 large businesses will be affected by this tax and be required to pay for their pollution.
See this flowchart which helps determine possible carbon pricing liability for large businesses.
On 28 July 2011, the Government released exposure drafts of key Bills in the Clean Energy Legislative Package, including the Clean Energy Bill 2011, which establishes the carbon price mechanism.
This legislation will be part of the whole package that will be introduced into Parliament later in 2011.
The draft bills and a fact sheet are available at www.climatechange.gov.au
See article by G + T for further information on the carbon pricing mechanism and renewable energy innovation.
Companies will need to consider the extent to which the new price for carbon will affect them, either directly or through price increases being passed on by suppliers, and any opportunities to mitigate those effects.