Revenue from carbon solution levy could subsidise green iron, aluminium and fuel production, veteran economists argue Get our morning and afternoon news emails, free app or daily news podcast A tax on fossil fuel production could help fund Australia’s transition to becoming a carbon-free energy giant, lower the cost of living and assist the world to cut greenhouse emissions, according to two veteran economists. Ross Garnaut, a leading economist during the Hawke government, and Rod Sims, a former head of the competition watchdog, say a so-called carbon solution levy would raise $100bn in its first year alone if introduced in 2030-31 and set at Europe’s five-year average price of $90/tonne of carbon dioxide-equivalent. Sign up for Guardian Australia’s free morning and afternoon email newsletters for your daily news roundup Continue reading...

Negative gearing and the capital gains tax discount were either meant to improve affordability and failed – or their purpose was in fact the opposite Follow our Australia news live blog for latest updates Get our morning and afternoon news emails, free app or daily news podcast Australian policy is dominated by interest groups and politicians pretending they are trying to do one thing, while actually doing the opposite, and by those same groups pretending that the policies in place are working while they actually fail. This is most obvious when we talk about negative gearing and housing. Whenever discussing any policy, we always should step back and ask what we are trying to do, and whether what we have been doing has worked. Continue reading...

Negative gearing and the capital gains tax discount were either meant to improve affordability and failed – or their purpose was in fact the opposite