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Electricity prices to be affected by carbon tax?

Electricity prices to be affected by carbon tax  16000646 800474573 0 0 7051258 300

The extent to which the public accepts carbon taxation will be seen later this year when people start receiving their electricity bills, a report suggests.

Bills sent out after July 1 are expected to show the impact of the tax, which is likely to have an impact on electricity prices, noted the Conversation.

It explained that although carbon tax is set at $23 a tonne for 2012-13, the actual amount of tax shown in bills will vary between customers.

The report indicated that this situation is largely unavoidable due to the way electricity is bought and produced before it gets to people's homes, as well as how retailers make decisions in the wholesale electricity market.

Figures from the Treasury predict that the cost of the carbon pricing scheme will lead to families paying around $9.90 more per week during the first year of its introduction.

However, efforts have been made to mitigate the risk, such as through raising the tax-free threshold from $6,000 to $18,200.

This will exempt around one million people from the need to pay income tax or file a tax return, while people earning under $80,000 a year being eligible for a tax cut.

Posted by Charlie Moore