Thursday, October 13th, 2011
OVUM COMMENT: Kevin Noonan, Research Director

Until now, the carbon tax debate could be best described as an intense and sometimes vitriolic argument about the economic management. There has been very little room for discussion about the mechanics of actually delivering what really is a complex piece of legislation. Now, with the Bill’s passage through both Houses virtually assured, it is time to refocus on the business and IT opportunities offered by such a significant change. With the Federal Government betting its economic credentials on a balanced budget in 2012, there will be slim pickings in coming financial year. In such a tight fiscal environment, the carbon tax implementation offers real opportunities.

This is not just a tax. There are new industry assistance programs to be designed and implemented and a new regulatory environment to be delivered. The government has no room for slipups and will need to be laser focused on every detail.

The passage of the legislation also opens up long term opportunities for strategists and planners. Should the government win the next election, there will be ongoing work in delivering the proposed ETS. Should Labor lost the election, Mr Abbott is committed to unpicking the legislation and compensating some impacted sections of the community. Either way, environmental issues are set to remain hot topics for some years to come.

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Delphine Jersier
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