Premature celebration on carbon renegade

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It seems the Abbott Government’s celebrations upon repealing the carbon tax might have been premature (via MB reader Disco Stu):

ScreenHunter_3027 Jun. 27 13.13

According to The Australian today, several Senate cross-benchers have threatened to vote against the carbon tax’s repeal unless the Government extends subsidies to the automotive industry, which are slated for abolition once the local industry shutters:

…incoming Australian Motoring Enthusiast Party senator plans to vote against the repeal bills unless the Abbott government supports the Automotive Transformation Scheme, which is slated for abolition in January 2018.

Mr Muir may be supported in his stance by independent senator Nick Xenophon and Democratic Labour Party senator John Madigan — with the bloc potentially deciding the outcome of the vote…

The May budget stripped $618.5 million from the Automotive Transformation Scheme over eight years…

The Abbott government needs the votes of six of the eight crossbenchers in the new Senate to pass legislation.

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While I fail to see the point of channeling more taxpayer funds to the lame duck car industry, it would be poetic justice to see this unruly bloc of senators blocking the carbon tax’s repeal.

About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.