Carbon Taxes Face Constitutional Challenge

The newly introduced carbon and mining taxes from the Gillard Government will be put to the test before the High Court of Australia. The constitutional challenges will be launched by two of Australia’s mining billionaires despite, at this stage, the matter being far from clear.

The challenge comes from Queensland mining magnate Clive Palmer who has stated that he has been advised of the unconstitutional nature of the carbon tax in its current form. However, Palmer has not released the basis of his challenge and so many Constitutional Law experts are left puzzled by his claim of unconstitutionality.

The tax was drafted carefully with a view to withstanding constitutional challenges. The tax relies upon a range of federal powers, and comes with a number of clauses designed to head off constitutional attacks.

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