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Baird: Carbon tax costing NSW billions of dollars

New South Wales treasurer Mike Baird has said the carbon tax will see $1 billion paid by the state this year, meaning that bill payers will face rising electricity prices.

Treasury analysis in the state has shown that this financial year will see businesses and households face an estimated $580 million bill, which will be paid for through rising electricity prices.

Mr Baird explained that New South Wales was always going to suffer the most from the carbon tax.

"The Gillard government has refused to offer the New South Wales government appropriate compensation to offset this tax and this is already having a significant impact on the state's electricity assets and our state's budget bottom line," he said.

"However, it is the people of New South Wales who are suffering the most from these costs due to higher power prices across the state."

The carbon tax is having a negative impact at a most inopportune time, the state treasurer added, as the money spent could be invested in infrastructure projects or for extra public service jobs.

Generator assets in the state have experienced a $1.3 billion write-off as a result of the tax, Mr Baird explained.

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Posted by Charlie Moore