Australia faces significant challenges to its long-term economic prosperity and environmental sustainability: its current policies to reduce carbon emissions are inefficient and it is not on track to meet targets; the economic fundamentals are weak; and a structural budget deficit prevents funding for a wide range of important policy needs including productivity-enhancing reform and cost-of-living relief for households. 

This report sets out policies that can deliver emissions reduction and economic renewal together – a package that is fair, efficient and politically durable. It puts two ideas at the centre:

1. polluter pays levy – a ‘polluter pays’ mechanism that charges companies for the carbon pollution associated with fossil fuels extracted or imported for use in Australia
2. fair share levy – a Norway-style levy on the very large profits earned from Australia’s gas resources.

These proposed policies ensure polluting companies pay for the damage they cause, and that gas companies pay their share of tax to boost Australia’s prosperity and ensure cost-of-living relief to Australians.

The report is provided with chart data.