Finance Minister Mathias Cormann said the Government was not planning to repeal the carbon tax, but said it was considering how best to proceed with a new emissions trading scheme.
“We are looking at ways to reduce the emissions from electricity, the carbon dioxide emissions from coal-fired power stations, the emissions that come from motor vehicle fuel and the greenhouse gases that we are putting into the atmosphere,” Mr Cormann told reporters on Friday.
“So we’re still in the process of discussing those, and we’ll be making those decisions in due course.”
The Government has not announced any changes to the current emissions trading system, which allows businesses and businesses and households to trade carbon allowances for a fixed price.
Mr Corman said the government had also “looked at all the options” for reducing emissions and “we’re also looking at a new system”.
“We will take a look at all of them,” he said.
Mr Morrison said the carbon levy was “an absolute pain in the arse” for families.
“But the carbon price was a good tool to bring down emissions and it’s also a good thing for the economy because it drives people to spend more money, especially on things like heating, and it allows for a fairer economy,” he told ABC Radio National.
The Federal Government said it would look at its options, but it would not repeal the Carbon Tax.
“It’s a pain in our arse, but we’ll look at what we can do, we’ll continue to work with the states, we have an emissions trading program in place, but I’m not going to abolish it,” Mr Morrison told ABC radio on Friday morning.
“That would be like repealing a toothbrush.
It’s not a good idea.”
Mr Morrison also said the Coalition would continue to support the Renewable Energy Target, which was introduced by Labor and set to kick in from April 1.
“There’s a lot of issues we’re dealing with, the price of carbon, climate change and the need for renewable energy,” he added.
The Government said the policy had been “a disaster” and called for “full compliance” from businesses.
“The Renewable Energies Target will provide a significant boost to the Australian economy and will deliver real benefits for the people of Australia and the world,” a statement from the Prime Minister’s office said.
“Under the current system, businesses must pay into the scheme in order to make any financial contribution to the scheme.”
“The Government is committed to full compliance with the Renewables Target, so we’re working hard to get the scheme running in full capacity as soon as possible.”
Mr Cormin said the Carbon Tracker Initiative would look into the feasibility of setting a cap on emissions.
“You could do that without any impact on the Australian environment,” he warned.
“I’ve got some work to do on that.”
‘It’s just one more thing’ The carbon tax was introduced to combat Australia’s worsening air pollution crisis, and was initially introduced in 2010.
The new emissions-cutting scheme will see businesses, households and businesses trading the carbon allowances, which are set to expire in 2021.
The Carbon Tracker will also look into ways to use the money to reduce greenhouse gas emissions, which will be paid for by a carbon levy on the economy.
Businesses and households will have to pay for any reduction in emissions through carbon credits, which have a fixed cost of $15 per tonne.
The Coalition said the move would provide a “significant boost to Australia’s economy and is a great step in the right direction”.
“The Carbon Tracker is just one of the many tools that will be developed to support our national economic growth,” Mr Turnbull said.
“We have the highest CO2 emissions in the world and it is simply one more tool in the toolbox for reducing our carbon footprint.”
The Opposition has been lobbying for a carbon tax since the election.
But the Government has been accused of trying to take the heat out of the Climate Change Authority’s (CCA) review of the scheme.
Mr Turnbull has defended the carbon cap as “the best we can” and said it could “create millions of jobs”.
But some businesses have been sceptical about the Government’s carbon pricing scheme.
The Carbon Trading Scheme was introduced in March 2011 by former Prime Minister Kevin Rudd.
It saw businesses pay into a scheme to buy allowances for reducing their carbon emissions.
Since then, more than $6 billion has been invested into the system, with $2 billion of that coming from businesses, with the remainder coming from households.
Opposition Leader Bill Shorten said he was “disappointed” in the Carbon Trading scheme, but the Opposition would not scrap it.
Mr Shorten had previously told The Australian Financial Review that the carbon market was “a bit of a mess” and was “inherently flawed”.
“The carbon price has been an absolute pain-in-the-ass for families and businesses, it’s just a big part