MP: impact of carbon price on families will be modest

Families will be modestly impacted by carbon tax  says mp 16000646 800478901 0 0 7020243 300

With the federal Budget announcement yesterday (May 8) including a focus on the support of an energy-efficient future, households may wonder how their utility expenditure will be affected.

Electricity prices will bear some of the burden of the carbon price after its commencement on July 1, however federal minister for climate change and energy efficiency Greg Combet said yesterday that the impact on families will be modest.

"Over four million households will get an extra buffer with assistance that covers 120 per cent of the average expected impact for a household of their income and type.

"The Gillard government will also support local jobs and ensure industries remain competitive as we transition to a low carbon future," he stated.

Federal initiatives including tax cuts and increases in pensions, allowances and family payments will assist almost six million households to meet their average price impact, Mr Combet said.

According to Treasury modelling, the $23 carbon price increase will only increase the Consumer Price Index by 0.7 per cent.

Mr Combet explained: "Generous household assistance payments and support for jobs in trade-exposed industries [will assist with] the transition to a low carbon economy."

Posted by Charlie Moore