Carbon price compensation to begin

Many Australian households will be concerned about the impact of the carbon tax that will be introduced at the beginning of the next financial year (July 1).

The increase in costs that accompany the tax levy will be passed on by retailers and energy networks, essentially pushing up electricity prices for householders and businesses by what could work out to be a significant amount when spread out over a year.

However, the federal government pledged to offer support for families in the lead-up to the new tax scheme and this week that help will initiate.

The first amounts of household compensation will start being deposited into eligible consumers' accounts today (May 16), with the aim to cushion costs that will begin to rise after July 1.

It is estimated that around 1.6 million families receiving Family Tax Benefit Part A or B will have extra pocket money delivered to their bank accounts over the coming fortnight.

Those on Part A will receive up to $110 for each child in the household and for those receiving Part B can access up to $69 per dependent.

Nine out of ten households can expect to receive tax cuts or similar compensation payments to reduce the impact of the carbon tax.

Posted by Charlie Moore