Canberra 25 July 2013. The Rudd Government today released an exposure draft of legislation to implement an earlier start to emissions trading.

On 16 July, the Government announced it would terminate the carbon tax and bring forward the emissions trading scheme to 1 July 2014.

Australian households will benefit from a reduction in the cost of living worth around $380 to an average household next financial year after the nation moves to a floating price on carbon pollution.

An early start to emissions trading is expected to result in a lower carbon price. Based on current market conditions, the price is expected to be around $6 in next financial year, 75 per cent lower than under the current fixed price arrangements.

An earlier start to emissions trading will also mean Australia introduces a cap on the carbon pollution of our largest emitters one year earlier, helping us meet our emissions reduction targets.

The Government is also maintaining strong complementary policies, including the legislated Renewable Energy Target, Clean Energy Finance Corporation and Australian Renewable Energy Agency, that will work with the carbon price signal to drive investment in renewable energy and low emissions technologies.

The draft amendments have been published to enable consultation with businesses, other carbon market participants and interested parties about how the early move to emissions trading will occur.

Submissions on the draft legislative amendments can be made to the Department of Industry, Innovation, Climate Change, Science, Research and Tertiary Education by 5pm on Thursday, 15 August 2013.

More details are on the Department’s website.