Australia and Energy Ideas

Australia Businesses Call For Tax Breaks On Energy Efficiency



CANBERRA -(Dow Jones)- Australian business groups are calling on the government to use tax breaks to improve energy efficiency, rather than the " heavy-handed" approaches of a carbon tax or an emissions trading scheme, until there is an international consensus on climate policy.

It comes as the ruling Labor government is due to meet Tuesday to consider fresh approaches to climate policy in the run-up to a general election. New Prime Minister Julia Gillard named climate change one of the key issues she plans to address following the ouster of Kevin Rudd as leader on June 24.

Gillard has said she won't consider reintroducing plans for a carbon emissions trading scheme until at least 2012, in line with a delayed timetable Rudd announced in April.

But she is expected to flag new renewable energy and energy efficiency measures.

"With government this week again considering climate policy, there is no quick pre-election fix. In the absence of a global consensus where other countries carry their fair share, the Australian government should look to policies which are measured, practical and more carrot than stick," Peter Anderson, chief executive of the Australian Chamber of Commerce & Industry, said in a statement.

"The recent change in Australian political leadership did not change the fact that the Copenhagen (climate) conference failed to reach a global consensus. The Australian government must adapt policy to this reality," he said.

Tax incentives for lower-emitting plant and equipment would be a "step in the right direction", he said.

A survey of 1,000 business owners by ACCI found 75% favor business tax incentives for energy efficiency.

"Taxing our economy with a carbon tax or unilateral emissions trading scheme has low business support in the current environment. The higher energy costs it would bring to business and consumers would come with little global gain," Anderson said.

-By Rachel Pannett, Dow Jones Newswires; 61-2-6208-0901; rachel.pannett@ dowjones.com