Limited Ramifications From Carbon Tax Repeal

摘要

BMI View: We have assessed the implications of Australia's decision to repeal its carbon tax and arrived at a number of key conclusions. Fiscal Accounts: The abolition of the carbon tax will reduce fiscal revenues, which we believe will weigh on the federal budget, with the deficit persisting until FY2022/23 due to rising welfare spending and political opposition to spending cuts. Coal: The repeal will have a limited impact on the coal ector as d omestic miners will remain under pressure from spate of operating challenges unrelated to the carbon tax, such as growing environmental concerns and further tax hikes by major importers.