Tax cuts set to assist families with carbon tax price increases

The Gillard government has remained firmly in support of the new carbon tax, which came into effect Sunday (July 1), despite backlash from the public regarding its impact on electricity and gas prices.

"The carbon price which starts today means that in the year 2020, Australia’s carbon pollution will be at least 159 million tonnes less per annum than it would be without this policy - the equivalent of taking 45 million cars off the road," the government announced in a press release on July 1.

However the release also noted that many families would be adversely affected by rising prices as businesses look to reduce the economic impact of the carbon tax by passing on costs.

For that reason, the government has also introduced a range of tax cuts aimed at helping struggling families to stay afloat.

Low income households will benefit the most, with a tripling from the tax-free threshold from $6,000 to $18,200 set to provide them with more income to spend on essential living costs.

Furthermore, it was asserted that much of the revenue raised by the carbon price would go towards assisting families in the future.

"More than half the revenue raised will help households with the modest cost of living impacts through tax cuts, higher family payments and increases in pensions and other benefits and allowances," the government claimed.

Australians who are still concerned about the impact of the carbon tax on their weekly expenditures might consider reviewing their gas supplier to ensure they are with the best provider to suit their needs.

Posted by Callum Fleming