In December 2011, Australia and New Zealand agreed to strengthen the links between their emissions trading schemes. Little substantive detail was provided and it is a work in progress.
In Australia, the carbon price commenced on 1 July 2012, and it will transition to an emissions trading scheme on 1 July 2015. New Zealand's emissions trading scheme has applied to industries on a staggered basis since 2008, and has recently been subject to change.
It was recently accepted as part of a review of the New Zealand scheme that alignment between the Australian and New Zealand emissions schemes is an important consideration in the context of the Australia New Zealand Closer Economic Relations Trade Agreement. It was concluded that it was desirable for the two schemes to broadly work in harmony.
Our report provides an overview and comparison of Australia’s carbon price and New Zealand’s emissions trading scheme from a taxation perspective.
While there is broad consistency in approach from a taxation perspective right now, further work from both sides is needed for the schemes to operate seamlessly together.
Download Report: 'Emissions trading and tax. A trans-Tasman perspective'