Thirty two years ago, on this day, September 14th, 1994,
A carbon tax, which could have a significant impact on Australia’s resources sector, will be examined as part of the Federal Government’s business tax reforms.
While it is not one of the Ralph report recommendations, a paper has been prepared by Treasury that is expected to be used by the Government when it begins negotiations with the Australian Democrats on the business tax reform package.
In negotiations to secure approval for the Government’s landmark business tax reforms, the Democrats are expected to push for a more systematic approach to Australia’s commitment to reduce greenhouse emissions under the Kyoto targets. This might involve a tax on emissions or other measures, such as greenhouse credits for tree plantations.
Dodson, L. and Lewis, S. 1999. Government puts carbon tax on agenda. The Australian Financial Review, 14 September, p.1.
AND
Industry has reacted with horror to the prospect of a carbon tax being floated simultaneously with the release of the Federal Government’s business tax reform package.
WMC executive officer Mr Ray Evans described the Government’s decision to float a carbon tax proposal as “a unilateral act of self-mutilation”.
1999 Hordern, N. 1999. Industry greets plan for carbon tax with horror. The Australian Financial Review, 15 September, p.3.
The amount of carbon dioxide in the air was 359/368ppm. As of 2026, when this post was published, it is 430ppm. This matters because the more carbon dioxide in the air, the more heat gets trapped. The more heat, the more extreme weather events. You can make it more complicated than that if you want, but really, it’s not. Fwiw, I have a tattoo of the Keeling Curve on my left forearm.
The broader context was … well, look,one of the obvious things you do when bad things are happening is you disincentivize them. You either make them illegal or you raise the economic /social price.
The idea of putting a price on carbon dioxide had been pushed by Barry Jones, the Science Minister, or at least mentioned by him in 1988/9 but the basic idea had gone back to 1965, if you look at the President’s Scientific Advisory Council report, Restoring the Quality of Our Natural Environment.
And the proposal for a carbon tax had been there in the Ecologically Sustainable Development policy papers, and it had been kiboshed, and it was now on the table in 1994 again as part of the budget discussions, and so that the Environment Minister John Faulkner would have something in his hand to go to the first COP in the way that Ros Kelly, the Environment Minister in 1990 needed something in her hand for the Second World Climate Conference.
Five years later, the idea of an emissions carbon tax was dead. Long live an emissions trading scheme.
What I think we can learn from this is that putting a price on carbon was a small but useful part of the policy solutions, it was not liked by the incumbents, and therefore it was attacked with ferocity and finesse.
What happened next. An emissions trading scheme proposal was defeated in 2000 thanks to South Australian Senator Nick Minchin, and again in 2003 thanks to John Howard acting on his own. It was not until 2006/7 that an emissions trading scheme became “inevitable.” Kevin Rudd still managed to fuck it up as Prime Minister, and it was left to Julia Gillard to clean up the mess, but her scheme only lasted a couple of years before it was then abolished by Tony Abbott.
On this topic, you might like these other posts on All Our Yesterdays
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You can see the chronological list of All Our Yesterdays “on this day” posts here.
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Also on this day:
September 14, 1991 – the Green Wave has receded….
September 14, 1993 – scientists suffer backlash (not outa thin air though)