Coalition caught out spreading falsehoods about Carbon Tax

THE Coalition's claim that moving swiftly to a floating carbon price would cost the budget up to $15 billion has been rated "mostly false" by the fact-checking service PolitiFact, which partners with Fairfax Media from today.

During the 40 days leading up to the election, PolitiFact will publish a checked fact a day on The Sydney Morning Herald and The Age websites.

The claim the change would mean "a black hole of up to $15 billion in the budget" was made by shadow treasurer Joe Hockey on the Channel Seven Sunrise program on Friday, June 28, two days after Kevin Rudd retook the Labor Party leadership.

Now at $24.15 a tonne, Australia's carbon price was set to plummet to the European price (currently $6 a tonne) on July 1, 2015.

Doing it two years earlier "could have a $15 billion impact on the government's revenue over the forward estimates", according to the Coalition's climate change spokesman Greg Hunt, who provided the figures used by Mr Hockey.

Read more at the Sydney Morning Herald