Pensioners to receive carbon tax compensation

In order to offset the impact of the carbon tax, pensioners will be able to access compensatory payments from the federal government.

Before the carbon tax commences on July 1, Julia Gillard has promised $707 million worth of compensation will be paid to households - and from today (May 28) pensioners will be able to access their share of those payments.

Single people will receive a one-off lump sum of $250 and couples will have access to $380 - these amounts will apply to full and part pensions.

Speaking to reporters in Canberra yesterday, Ms Gillard stated: "This assistance is there to help people with the flow-through impact of putting a price on carbon."

She added that millions of Australian pensioners will be better off, with regular yearly payments beginning in March next year.

From that time, singles will receive $338 and couples will get an extra $510 - this compensation will be paid at the same time as the normal pension payment and will contribute to the household costs impacted by rising electricity prices and charges passed on by suppliers.

Posted by Charlie Moore