July 12, 2011

Household Impact & Compensation

The carbon pricing scheme will impose costs on big polluters, which will result in higher end prices for certain products. Treasury estimates that an average family will pay $9.90 more per week in the first year of the scheme’s introduction.

Treasure modelling on the impact of the planned carbon price on household expenses

Treasure modelling on the impact of pricing carbon on household expenses

There are two measures that have been introduced as part of the package to soften the impact of these price rises. Firstly, the tax-free threshold will be more than tripled from $6,000 to $18,200, exempting 1 million people from the need to pay income tax or file a tax return. People earning less than $80,000 per year will also receive a tax cut, which for most will equal approximately $300 per year. Secondly, generous assistance will also be provided to households through welfare payments. Pensioners and self-funded retirees, as well as family payment recipients and other allowance recipients will see their payments increase.

Millions of households, particularly pensioners and low income households, will be better off.

The level of compensation will see the vast majority of people be fully compensated for the price increases, and many will actually end up better off. Plus, if you can reduce your dependence on carbon-intensive products you could end up even better off still.

For more information about your specific entitlements, please try the Household compensation calculator.

This post is based on a briefing paper from the Environment Defenders Office Victoria

  • Matadorak

    If i own a car that runs on diesel will i pay more than if i owned a car that runs on petrol just like in NZ under their carbon tax or are we lying about that too??

  • Raj

    So we all need SMART METERS so we can get ripped off by the Electricity companys then we get a Carbon Tax on top of GST, Income tax & Land tax.

  • Getstuffedjuliar

    I would be interested to know why Juliar
    Gillard is continuing to lie to the Australian public. She is a complete and
    utter fool and if anyone believes her and her equally stupid ministers that
    this carbon tax and the mining tax will not be bad for families is a fool.
    Also Gillard claims that she will compensate families but then this just
    completely undermines the tax. In other words what is the point of bringing in
    a tax if the payers are going to get their money back? The answer is purely
    simple she is a lying fool; either that or she is “Bob Brown’s
    bitch”.
    Speaking of Bob Brown why is forcing the government to enforce these taxes? The
    answer is again simply obvious; firstly, Gillard is allowing Bob Brown to force
    this upon the Australian people because she is only interested in staying in
    power. Which indicates that she does not give a stuff about the Australian
    public. Another point to bring to the attention of those that haven’t realised
    is that the Independents don’t care about the Australian people either
    otherwise they would withdraw their support for the government and allow the
    public to decide whether or not they want the Carbon and mining taxes.
    Which brings us to our next question- why are the Independents continuing to
    support the worst government in world history? Well there are several obvious
    reasons, firstly, Wilke, Windsor, Bandt and Oakshott in particular are all
    idiots. Oakshott is fact only support Gillard because if the current Labor
    Government of fools remain in power for their entire term, it means that he
    will have completed eight years in parliament. This means that he is guaranteed
    a lifetime pension of $150 000 a year. This is again another indication that
    Labor, the Greens and are the Independents don’t care for the Australian
    people, for us as Australian citizens. It means they have turned their backs on
    us and blind to the destruction they are causing to Australian society.
    Which brings me to the next question- why won’t Quentin Brice, the Governor
    General, sack the worst government in world history? Well the answer is again
    simple, she is corrupt. Well at least in the sense that her son-in-law, Bill
    Shorten, is one of the Gillard government’s senior ministers.
    So in order to save Australia from the Destructiveness that all Labor governments
    seem to cause we have few options.
    The First- knock down Quentin Brice’s door and force her to call a double
    dissolution
    The Second- protest and protest and protest right in front of Gillard until she
    herself gets the knife in the back. This will not solve the problem but it will
    be a temporary relief.
    And the Third- when the election comes around in 2013 vote Liberal or National,
    whatever you do, do NOT vote Labor, Green or Independent. Also remember to keep
    in mind that A VOTE FOR LABOR IS A VOTE FOR DESTRUCTION. Which is why I advise
    all Australians to vote Liberal or National because a vote for Liberal or
    National is a vote for stability, a vote for relief and most important of  all… A VOTE FOR LIBERAL AND NATIONAL IS A
    VOTE FOR CONSTRUCTION!

  • Xsor

    in average earth temperature was 10C higher than today… just thing about it? what do you try to fight

  • http://www.facebook.com/nicky.rutley Nicky Rutley

     Is that you Alan????

  • Ianford147

    Global warning and cooling is all part of a billion year old cycle. All the ‘hoo haa’, about it being a result of our ‘modern world’, is a great load of tripe.(tripe being something only a handful of grossly greedy people can stomach). The so called very generous pension, of which I am greatful for, is however hardly enough to exist on, no hope of a life or a mechanic to fix the car. There is no doubt we all need to do more for our environment, however charging people more to live day by day is NOT the answer. From my experience, it cost a fair bit more to eat more appropriate foods,, it cost more to be completely green, so I have to ask, exactly how do the Hillard Goblins expect us to get by paying more for everything we already cannot afford. It,(the tax), hasn’t even come in but fuel has skyrocketed. The only option I have as a disability pensioner, is to take out life insurance, and have a “nasty accident”, just to provide for my child. Doesn’t seem fair to me. A life in pain is not much to look forward to. Thanks for the lie Julia f$#@tard.

  • GC – secular party voter

    I am in an income bracket that will leave me about $400 a year worse off (my wife and I have two good incomes a modest mortgage and 2 kids). Seeing as we save about 10-20k a year that’s hardly a drop in the ocean. Still, if we spend 2k on solar panels we’d be many hundreds a year better off and the impact of the carbon tax for us would be wiped out in 5 years – after which we’d be ahead. The incentive is clearly there with this tax to switch behaviour to carbon-reducing options for everyone.

  • Psychshift

     well their a government all governments lie but i do see the thinking behind this carbon tax all most people who are complaining about it are people who are loosing money from their pocket stop think JUST about money yes people will be compensated negating the added costs of having a carbon tax or trading scheme its more of a psychological law to change people’s attitudes towards technology and to make people more responsible in handling those technologys people need to change first see our technology have have gotten better but our attitudes havn’t money aint worth shit if were all extinct

  • Crossin_Floors

    Julia’s Government are of aging years and are clearly just using a common dinning room tabel chat to a whole new level to fund her holidays to Hawaii in several years.
    Taxing the 500 top (secret) polluters, [please try and find who the top 500 are] is only going to raise prices of everything from A-Z.
    Clearly the TAX is going to boost the cost of everything, and leave everyone with empty pockets as all the business’ will be feeling the budge of lossing business because of raising costs and our economy looking more like a New Zealand dollar then our current high Aussie Dollar.

  • Gjsdggdajs

    poo

  • Astrid

    The impact will be felt most by those who lose their jobs – companies who have to pay this tax will have to cut costs in other areas…Very big impact on those families and their households!  Also,   the Aussie dream will be even less achievable with  new houses costing 5% (HIA’s estimate) more.

  • http://www.facebook.com/people/David-Anderton/504726871 David Anderton

     finally someone not brain washed bye the commercial media

  • labormannomore

    it is about time we australians stand up to the goverment of this great country before it is to late and let them know they work for us not just for them selfs.how many taxs do we have to have before they stuff everything 

  • Bob

    @matadorak yes you will have to

  • Email

    So if I fart will I have to pay for what I just produced

  • Rogerparker

    how can the goverment guarantee that carbon tax will stop global warming.the cost of liveing will go up for every one.

  • May

    How are we going to do that?

  • TB

    If the government was really serious about carbon emissions they would be offering better incentives to help ALL Australian install solar panels, this reducing emissions from the power stations. what really annoys me is those people who earn low wages, are not eligible for any family tax benefits due to not having children – will not get the household payments to assist with this tax……..

  • Guest

    Very eloquent. You have managed to make yourself sound like an uneducated fool who knows nothing but how to throw insults at people. 
    “Wilke, Windsor, Bandt and Oakshott in particular are all idiots.” Of course! You’re right! The Labor government was not voted in by the people, therefore they should all pack their bags immediately. The fact that the people also did not vote in the Liberals means they also should pack their bags and head on out, if we follow that logic. And yes, I agree. But who will be happy then? Who will run the show, and if you, how will you make 21 million people happy?

    I also hate politicians and believe there is corruption among it’s ranks, but the corruption lies within the consumerist society where we all want everything for nothing. These taxes, at their roots, are attempting to create a more equal society where people who earn the most pay the most in taxes. The only problem here is the people who earn the most are generally those better educated and therefore make their arguments appear better thought-out than your own and all you do is find yourself believing them and blaming the wrong people in the matter.

    The mining industry, while proving jobs to Australian people, is predominantly foreign and all the money that is not taxed goes offshore and is not redistributed into Australia. A mining tax ensures we Australians are not losing all that money to foreign investors and would, according to plans by the Greens party, be used to fund clean energy, instead of taxing the people for that money like the carbon tax is seemingly doing. And this is happening because the wealthy minority funded campaigns to denigrate the tax and put the Australian people against it. This resulted in a pathetic mining tax, which results in more tax by the citizens. Ergo, this problem was bred from your miseducated empty skull and Julia is not the only person to blame.

    Politics is a game of popularity, and all I can say is I rest well at night knowing Tony Abbott and the Liberal party do not have full reign over the country as yet, and fear for that day as another show like John Howard’s 2004-07 stint.

    Good luck Australia.

  • Guest

    They did have a scheme a few years ago for this. The people hated it and said it was stupid and not worth doing so it was scrapped. Don’t blame the government for doing as the people ask them to also.

  • Kenjp60

    The governments Carbon Tax is being promoted with smoke and mirrors. They say they are compensating households for the impact – what there not saying is how much it will cost people the moment they step out of their homes. From the farmer (who is not compensated) thru the manufacturer/wholesaler (not compensated) to the retailer (not compensated) there is carbon tax costs which will/must be passed on. Treasury modelling is on the impact to the ‘average’ household – no modelling has been presented as to the impact on business and therefore cost increases. Already there is advice that gas will increase, rubbish removal will increase, power and water have and will increase as well all freight is to increase. We estimate that the real effect will be very close to the equivalent of GST – that is to say approximately 6.5% on nett costs.

  • emmame

     Open your eyes evidence is all around you. Yes global warming is a cycle, but evidence is showing this cycle is going much too fast. It is pretty obvious the amount of co2 being released these days is FAR more than the natural cycle can keep up with. So stop saying no no no and denying the truth. Stop digging your feet in the ground and make better changes for the future. Why is everyone so angry that we are leading the way of the future. Stop being so negative

  • Anon

    I don’t have a problem with a carbon tax but I question the government’s modelling.  I just received my first electricity bill with an 18.5% increase in the rate charged.  Even the gov’ts estimated impact is $9 a week, with a tax offset is $3 per year!!  And no I’m not on a high-income – just the upper end of the cut-off. Wish they’d be upfront about the real impact to users as there is no transparency to the process.

  • Maklin05

    I see on my power bill i am now paying GST on the carbon tax. Is carbon tax a goods? or a service? or are we just paying a tax on a tax. Mark.

  • Hjuyt_kil

    the carbon tax is a fucken ripoff and will destroy this country

  • Vsgafdua_hjas

    the carbon tax will get gillard out of power next year in election

  • Hjuyt_kil

    This tax is designed to rob people off their hard earned money. when will this bitch stop lying to us and tell us the real reason of this tax. how much will it affect the public and companies? the governemnt is trying to pay for their leisure trips overseas in two years when their booted out by the public by robbing our money. when will we stand up and fight? time is of the essence. when the country is plundering in recession and people are dying of hunger on the streets then what will we do? ask yourself- would i reather save the planet and die on the streets without an income or would i keep my job and survive to see my grandchildren. either we fight now or see our fellow citizens lose thier jobs. julia gillard is a bitch that needs to pack her bags and leave. this governemnt was put in power unfairly without the publics say and its time we fight back. thank u and FIGHT THE GOVERNEMNT.

  • guest

    Julia*, not Juliar. Learn to spell the prime ministers name right at least… then i would consider reading your essay.

  • http://www.facebook.com/bigblueeyedgirl Chrissy Long

    so based on ur calcutations my eclectricity bill should have gone up $39.60 a quater please explain how it jumped $990 a quater you dogs