The Australian Institute surveyed a representative sample of 1,017 Australians about a proposed levy on fossil fuel exports in January this year and revealed a slim majority of 52% support a tax on fossil fuels that would compensate Australians for the costs incurred due to climate change, regardless of the size of the tax imposed.
One in five or 21% of voters opposed the measure, meaning twice as many people supported it as opposed, regardless of whether the levy was set at $1 per tonne (52% support, 20% oppose) or $20 per tonne (also 52% support, 21% oppose).
Unsurprisingly, support was split along political lines – Labour voters were split 66% to 11% in favour to opposed, Coalition voters 42% to 30%, Greens 71% to 6% and independents 41% to 17%.
“The message from the Australian people is pretty clear: just get it done,” said Dr Richard Denniss, executive director of the Australia Institute.
“A majority of Australians back a tax on the fossil fuel industry, regardless of its size. The rest is detail. The public is clearly frustrated with the lack of tax paid by the industry.
“There is support for a tax on fossil fuel producers and their massive profits, in return for the significant damage they cause to our climate – costs that come back to taxpayers through natural disasters and higher insurance premiums.
“Stage 3 has shown us that the Australian people are up for an honest conversation about tax, so let’s get on with it.”
Economists propose $100 billion tax
Just last week leading Australian economists Ross Garnaut and Rod Sims proposed a tax on Australian fossil fuel production that could raise A$100 billion in its first year and position Australia as a leader in the green energy revolution.
The idea has already been rejected by the Federal Labor Government, National Party and several business and fossil fuel groups, but supported by the Greens.
“We are not up for the levy that Professor Sims and Professor Garnaut proposed,” Federal Treasurer Jim Chalmers said.
“The reason for that is because we found a better way or at least an alternative way, but we feel a better way to implement what is already a comprehensive and ambitious agenda when it comes to clean energy, when it comes to climate change and when it comes to those industrial opportunities from becoming a renewable energy superpower.”
The levy, which has been proposed at a $90 per tonne price point, would apply to exporters of fossil fuels such as coal and gas, and importers of oil and diesel.
“We can use it to raise productivity and living standards after the decade of stagnation,” Garnaut said.
“Other countries do not share our natural endowments of wind and solar energy resources, land to deploy them, as well as land to grow biomass sustainably as an alternative to petroleum and coal for chemical manufacture.
“In the zero-carbon economy, Australia is the economically natural location to produce a substantial proportion of the products currently made with large carbon emissions in Northeast Asia and Europe.”
Proposal meets political opposition
Nationals leader David Littleproud was unimpressed with the proposal, indicating it would drive business away from Australian shores.
“This would destroy resources’ jobs and our economy,” he said.
“This proposal also conveniently places all the burden on regional Australia but all Australians will pay, by tearing up agricultural land with renewable projects that will drive up food prices.”
The Minerals Council of Australia was similarly dismissive of the idea.
“Reducing global emissions will require innovation and creativity, simplistic and blunt taxes on Australian industry is not the way forward,” Minerals Council of Australia chief executive Tania Constable said.
“The challenge Australia must be focused on is how we get there without damaging our economy and slashing tens of thousands of regional jobs and billions in investment.”
The broad rejection doesn’t seem to have phased Professor Sims.
“If people don’t want it in their backyard, there’s plenty of plenty of room left in everybody else’s backyard,” he said.
“I’m very confident that at some stage this (a carbon solutions levy) will get adopted. I just can’t tell you when.
“Anyone who does not anticipate what is good or necessary policy coming in at some time hasn’t absorbed any of the reality around them.
“In the end, political judgments will have to be made about whether restoration of rising income standards … and productivity growth and prosperity for the Australian people are more important than preserving the profitability of the oil and gas companies.”