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Angus Taylor proposes tax to keep Australian coal and gas-fired power plants operating

August 30, 2021


Angus Taylor’s proposed “CoalKeeper” tax on electricity bills could significantly outstrip the impact of the Gillard government’s carbon price, forcing up household electricity prices by at least 14%.

The tax, which would pay to subsidise the Coalition’s fossil fuel donors to keep uncommercial coal and gas-fired power plants operating even if the electricity they produce is unused, has been estimated by the Institute for Energy Economics and Financial Analysis to cost between $2.9-6.9 billion. That would mean an increase in ordinary household electricity bills of between $182-430 a year.

An additional $182 a year would mean a 13.6% increase in electricity bills in south-east Queensland, based on bill data from the Australian Energy Market Commission (AEMC). It would mean a 14% rise in NSW; 9.3% in the ACT, 16% in Victoria, 9.7% in South Australia and 9.4% in Tasmania. An increase of $400 a year would mean bill increases of more than double those figures. The AEMC has forecast bill reductions in south-east Queensland, Victoria and South Australia this year, suggesting the increases would be proportionately even bigger.

[ Bernard Keane  ] 

More:CoalKeeper: Angus Taylor’s tax set to dwarf Gillard’s carbon price

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