Federal opposition leader Tony Abbott pledged yesterday to cancel the government historic carbon tax legislation, but Prime Minister Julia Gillard said the parliamentary victory meant that the coalition was "marooned on the tide of history''. The legislation now goes to the Senate, where it will easily pass with the support of the greens next month, a $ 23-at a carbon tax could begin next July. While the cost of living is expected to increase by 0.7 percent below the tax, low-income and middle-income households will be compensated and the system will be established to increase investment in clean energy technology.
Carbon pricing has long been an issue in Australian politics, with both major parties promising to implement one in leading up to the 2007 Australian election. After Kevin Rudd was elected Prime Minister, the government introduced the Carbon Pollution Reduction Scheme, which the Liberal Party of Australia opposed after Tony Abbott overthrew Malcolm Turnbull as party leader. This left the Rudd Government unable to secure passage of the bill which was subsequently dropped. This was seen as a major contributor to Julia Gillard's replacement of Rudd as Prime Minister.
On 30 April 2007, the state Labor Governments commissioned the Garnaut Climate Change Review, whose sponsorship was joined by the Rudd Government soon after taking office in December 2007. The resulting report, delivered on 30 September 2008, recommended an Emissions trading cap-and-trade system.
Subsequently the Rudd Government proposed a Carbon Pollution Reduction Scheme, which after much criticism, was voted down in the Australian Senate by both the Australian Greens (for being too ineffective), and the conservative Coalition (Australia) (for the effect on key economic sectors), as well as independent Senators Nick Xenophon and climate change sceptic Steve Fielding. In April 2010, the Rudd Government withdrew the CPRS proposal, at least until after 2013.
Ms Gillard was jubilant as her controversial clean energy legislation won approval in parliament's passage of sparking an outpouring of congratulations work in rows.
After the vote passed, 74 - 72, Ms Gillard hugged and kissed members of his front bench, including Foreign Minister Kevin Rudd, who lost the lead with her in June 2010 after its pollution, reducing carbon emissions has been abandoned.
Related $ 300million transformation of the steel bill also passed the House, this time with more independent Bob Katter help, who brought the voice of 75 to 71. Opposition frontbencher Sophie Mirabella was not allowed to vote against the bills because she was expelled from Parliament in the evening for unruly behavior.