Against that background it is both straightforward and sensible to repeal the carbon tax. This repeal gives certainty for business by applying three principles.
First, the tax can be repealed quickly. In that context the next election will be a referendum on a tax that most people believe has no mandate. If the ALP loses that election it is almost impossible it could ignore such a mandate again. Its present position that elections are irrelevant is by definition unsustainable.
Removing the tax accordingly can be done within six months if the ALP respects the mandate or 12 months if not.
While a joint sitting is not our preferred option, our advice is that if necessary, it can be done in a little more than eight months at a minimum and in well under 12 months practically. In short, the tax can and will be removed early in the life of a Coalition government.
Second, there is no need for or risk of compensation by abolishing the tax. We do not have to cancel or abolish any permits; they remain the property of the business in question. All that happens is that businesses stop having to pay any further tax going forward.
Third, if the carbon tax is defeated it will, in my view, be off the agenda in Australia until at least 2040 and possibly indefinitely. Political memories are strong and will be reinforced by the trend away from a carbon tax in the US, Canada, China, Japan and India.
Gone sooner than later, Graham Richardson speaks out against the party frequently and on the ABC’s Q&A program last night he said Labor would be out office federally and in all states and territories by next year…(h/tBolta)
