The federal opposition has complained the ACT government is now paying carbon tax for the Mugga Lane landfill after liability was transferred from the operator, Remondis.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
NOWaste, operated by Territory and Municipal Services, has been included on the liable entities list for organisations directly responsible for paying the carbon tax.
The landfill captures methane to generate 25,000 MWhr/year of renewable electricity but the emissions that escape are in excess of 25,000 tonnes per annum, high enough to trigger the carbon pricing mechanism.
The ACT government said a preliminary estimate of its carbon tax bill from the landfill is $200,000 next financial year, rising to about $800,000 by 2016-17.
''These expenses are relatively modest in the context of the ACT budget,'' a spokesman for Environment Minister Simon Corbell said.
Large companies which incur the carbon tax have passed on the cost to consumers but the federal government has over-compensated households for the subsequent rise in the cost of living.
ACT Liberal Senator Gary Humphries said Canberra had been added to the carbon tax ''big polluters' list''.
''Canberra residents would be surprised to know that despite significant work to improve recycling and sustainability, they are still being penalised under the carbon tax,'' Mr Humphries said. ''It highlights the flaws in the policy, where councils or organisations which have been taking a lead in reducing their waste, are being hit by the carbon tax.''
Opposition environment spokesman Greg Hunt said the federal government should be encouraging operators who promoted sustainable practices, not hitting them with a carbon tax bill.
A spokesman for federal Environment Minister Greg Combet said: ''It is sad to see a long-time supporter of carbon pricing like Gary Humphries dumped from his Senate spot and then put on a misleading media release by Greg Hunt about carbon pricing.
''The government has always been clear that large landfills emitting over 25,000 tonnes, such as the one at Mugga Lane, are liable under the carbon price and that the impact of this is fully incorporated into the household assistance package. Both the Mugga Lane and Belconnen landfills capture methane and create renewable electricity.
''They are both accredited to receive both carbon credits and renewable energy certificates under the government's plan. These will be a significant offset to any residual carbon costs. The Coalition should come clean on what ripping away $5 billion a year of household assistance will do for ACT residents and stop misleading them about carbon pricing.''