Opposition lashes out at plans for carbon tax redesign

The carbon tax has been a point of contention through the build up to the next federal election 16000646 800485462 0 0 14016325 300

The opposition party has strongly criticised plans for a redesign of the carbon tax and a linking of the European and Australian Emissions Trading Schemes.

In a statement published yesterday (August 28), the Liberal party labelled the move a "backflip" and claimed that the change "only adds to the uncertainty and confusion surrounding [Labor's] hugely expensive dud policy".

"This deal creates the worst of all worlds for Australia - higher electricity prices, reduced incentive for domestic abatement and a potentially massive budget black hole," reads the statement.

The linking of the European and Australian Emissions Trading Schemes could have implications for the cost of energy in this country, as electricity suppliers will now be required to take into account the fluctuating European carbon price before setting power prices.

The Coalition has been a vocal opponent of the carbon tax since its inception and has vowed to repeal the policy if elected into power.

However recent surveys have suggested that this strategy may not be paying off for the opposition. A poll published by News Ltd on August 21 revealed that Labor is now only six points behind the Coalition on a two-party preferred basis, 47 per cent to 53 per cent.

That means the gap between the two parties has halved within the past month, while at the same time Julia Gillard and Tony Abbott are now tied at 38 per cent each on a preferred prime minister basis.

Posted by Charlie Moore