In the absence of any attempt by News Ltd media to explain the straightforward market mechanism of the carbon price, allow me:

1) Businesses pay a price for the carbon they produce making carbon-intensive products more expensive. Consumers are compensated using the money collected.

2) Businesses now have an incentive to make low-carbon products, as these will be cheaper and thus chosen by consumers over more expensive high-carbon ones.

3) Eventually this market mechanism will minimise carbon production, the price paid and also the compensation paid.

Not so hard to understand, was it? Now, why did we need a GST again?

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