Carbon Tax Update: What on earth is going on?

Is Today the Day? 

The latest news reports the Senate is working through proposed amendments to the carbon tax repeal bills and is likely to vote before 2:00pm eastern time. 

Since Clive Palmer’s spectacular double back-flip on the Carbon Tax, it’s been impossible to work out what will happen next.

It was only two weeks ago that Palmer announced, alongside Al Gore, that despite his proposal for an Emissions Trading Scheme, he will support the repeal of the Carbon Tax.

Whether we like it or not, the only predictable thing about the new Senate is that it is unpredictable.

Since the Senate was sworn in on Monday we’ve seen a debate about whether or not the legislation should be brought forward, a debate about whether or not it should be debated and a debate about when it should be debated. Still following?

We are watching closely, but politics aside, what does it mean for the rest of us?

Groceries & Airfares

Today we learnt Qantas, Virgin Australia and Woolworths are all refusing to reduce prices once the carbon tax is repealed.

While they won’t reduce prices, Qantas has already scrapped a carbon surcharge and Woolworths believe prices will not be affected.

Power bills

With many households copping an electricity price rise on July 1, we’ll be watching closely to see what electricity retailers do when/if the carbon tax is repealed.

What we do know is that we won’t all see an immediate impact on our bills if the tax is repealed today. Why?

Some smaller retailers buy their power from generators on a fixed contract for, say, a year. Their costs won’t go down until the end of their contract, so they’re unlikely to pass savings onto you.

Bigger retailers should find it easier, as they generate their own power. Some, such as Origin, have promised to give the tax back, but we will all believe it when we see it.

It’s all happening and we expect to have an outcome at any moment.

What do you think? Will businesses pass back the Carbon Tax? Have you say on the FiftyUp Club forum

2.30 PM UPDATE: In the few hours since publishing this article, in yet another backflip the Senate voted against the Carbon Repeal Bills only proving our previous statement – “the only predictable thing about the new Senate is that it is unpredictable.”