‘Not radical, it’s fair’: Australian households would receive compensation in proposed ‘polluter pays levy’ scheme

The Guardian - World NewsCenter-LeftSCO 1 min read 100% complete by Adam Morton Climate and environment editorJanuary 28, 2026 at 02:01 PM

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A report by the Superpower Institute proposes a "polluter pays levy" on companies extracting or importing fossil fuels consumed in Australia. The analysis, supported by economists like Ross Garnaut, Rod Sims, and Ken Henry, suggests the Albanese government could generate over $35 billion annually by taxing polluting companies for environmental damage. This revenue could facilitate deep emissions cuts and restructure the federal budget. The proposal revisits carbon pricing, which was previously eliminated in Australia 12 years ago. The report argues that the levy is a fair approach to addressing the environmental costs associated with fossil fuel consumption.

Key Entities & Roles

Key Player Opposition Context

Tony Abbott 50% Labor Party ×260% Albanese government 70% Ross Garnaut ×280% Superpower Institute ×280% Australia ×390%

Keywords

polluter pays levy 90% carbon pricing 80% fossil fuels 70% emissions cuts 70% taxing polluting companies 70% australian households 50% federal budget 50% compensation 40%