The Assistant Treasurer, the Hon Bill Shorten, today introduced legislation into Parliament to implement the longstanding alternative fuels taxation policy.

The legislation phases in the taxation arrangements for liquefied petroleum gas (LPG), liquefied natural gas (LNG) and compressed natural gas (CNG) that were first announced by the Howard Government in 2004.

Well it looks like Australia will have a price on carbon by 1st July 2012 – at least so says PM Julia Gillard.

All that remains to be sorted out are a few of those pesky details, like who is going to pay it, how much it will be, and when - if ever – it becomes an emissions trading scheme. But who wants to let details such as these get in the way of a good story? For those who didn't just watch it, please find the time to read the transcript of Greg Combet's interview on ABC – it was an entertaining dodge and weave over the fact that Julia has broken another one of those election promises – the one about not having a price on carbon.

The basic details are:

• We will have a carbon tax for three to five years before a full emissions trading scheme is introduced;
• The fixed price will be placed on carbon pollution from July 1 2012, followed by – within three to five years – a cap and trade system (part of a 'smooth transition')
• A review one year before the end of the fixed price period will consider if there are any reasons to delay moving to a cap-and-trade scheme.
• The starting carbon price, the length of the fixed period and assistance measures for affected individuals and firms are still to be determined.
• The carbon price will apply to the energy sector, transport, industrial emissions and waste. It will not hit the agricultural sector.
• Compensation agreements still have to be discussed for households and business
• The target is still 5 per cent by 2020
• But there are still "a whole range of unanswered questions" before Tony Windsor will be supporting it, while supporting the exclusion of agriculture.

So it seems good news for alternative fuels. Minister Greg Combet has certainly left the ability for fuel to be included in the cap-and-trade system. "It is not a settled issue at this point in time, but it is an issue the committee will consider,'' he repeated on ABC tonight.

More updates to follow in due course I'm sure.

Release of Exposure Draft Legislation for the Taxation of Alternative Fuels

The Assistant Treasurer, the Hon Bill Shorten, today released draft legislation for public consultation on the Government's reform of the taxation of alternative fuels.