Apparently the government is open to the idea of a carbon tax.

http://www.abc.net.au/news/stories/2008/09/01/2352458.htm

I think that this is a good idea too - my main issue with trading schemes is that unlike a usual marketplace, an ETS is not self regulating - if you go to the butcher, and give him money, and he gives you green meat then you throw it in his face and demand your money back. In an ETS both parties have an incentive to lie, but no real incentive to verify the veracity of what they're buying. Additionally with a tax the price is stable.

Plus the idea of hiring an engineer rather than an accountant to avoid tax tickles me (because I'm an engineer).