Treasury reveals cost of carbon tax on Australian families

Friday, April 1, 2011

Treasury documents released today under the Freedom of Information (FOI) act reveal that Australians could face up to an A$863 rise in household costs per annum if the government proceeds with its plans to put a tax on carbon emissions.

The documents reveal an a annual price rise of $218.40 for electricity, $114.40 for gas, $187.20 for petrol and $88.40 for food for the average household. The treasury modelling was based on a $30 carbon tax, but also estimated other prices such as a $40 tax which predicted a rise of over $1,100 to the average household's annual budget. However, they do not take into account the compensation deals and offsets promised by the government if a price is put on carbon.

After viewing the treasury modelling, Treasurer Wayne Swan and Climate Change Minister Greg Combet released a joint statement saying without the finalization of compensation packages it is too early to predict price rises. "No final decisions on the starting price or assistance have been taken and therefore it is far too early to speculate on any potential price impacts," the statement said. Until the final design and modelling have been settled, anyone who uses these figures to scare families about prices is engaging in a dishonest, misleading scare campaign."

Opposition Leader Tony Abbott said the figures demonstrated the toll a carbon tax would have on Australian families. This just demonstrates that the Government has known all along that its carbon tax won't clean up the environment but it will clean out your wallet," he said. That's right and this is $863 a year in extra burden that the Australian people shouldn't have to pay. This is an $863 a year hit on families' cost of living. Families are doing it tough as things stand. They don't need a bad situation made much, much worse by Julia Gillard's carbon tax."

The Australian Chamber of Commerce and Industry (ACCI) has also officially opposed the adoption of a carbon tax. A resolution was passed by all 30 members at their general meeting to reject the Federal government's plan.

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Sources

Tom Arup. "Carbon tax to cost households $16.60 a week" — The Sydney Morning Herald, April 1, 2011
Sabra Lane and staff. "Treasury releases carbon tax cost estimates" — ABC Online, April 1, 2011

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