Garnaut ups the anti

The Age 18 March

"LOW and middle-income households would receive $5.75 billion worth of income tax cuts under a proposal to tie the introduction of a carbon price to sweeping tax reforms.

In his strongest speech since returning as a Labor adviser, Professor Ross Garnaut rejected suggestions a carbon price would damage the economy, arguing it would boost national productivity if linked to tax and welfare reform. He said the cost would be small compared with recent fluctuations in the exchange rate, petrol prices and interest rates.

Professor Garnaut recommended polluting industries be charged $20 to $30 per tonne emitted, increasing 4 per cent a year, with emissions trading starting in 2015. The scheme would be overseen by an independent carbon bank, similar to the Reserve Bank.

Launching an update to his 2008 climate review, he said about half of the revenue raised should be spent making the tax system fairer and more efficient, possibly in line with last year's largely ignored tax review by former Treasury secretary Ken Henry".