Australian government plans to introduce a carbon tax in July this year, with the tax expected to be significantly lower than $40/mt.
The political parties in Australia have been holding discussions on the proposed tax. The federal government has rejected reports a carbon tax rate of $40/mt will be required to achieve a switch from coal to new, gas-fired electricity generation, in order to reduce Australia's emissions.
Minister Combet stated that the proposed tax would be "well south of" $40/mt.