Why a Carbon Tax?

The CSIRO, Bureau of Meterology and various academies of science around the world have advised that environmental systems are being affected by rising levels of carbon pollution.

At present 89 countries globally, comprising of 80% of total emissions, have pledged to take action on climate change. Economic experts state that a carbon price is the cheapest most effect way of combating climate change.

How will it help?

The Carbon Tax is planned to cut pollution, foster innovation in green technologies, move the current energy industry away from using brown and black coal resources, Store carbon in the land by using better land and waste management.

What will it mean for my family?

While the main focus of the carbon tax is aimed at larger business, it is an unfortunate fact that some of the price may carried over to the consumer. It is expected that the markets that will be most affected will be energy and food, however the total increase to families is expected to be around 0.7% to household expenditure per annum.

As such the federal government has implanted a range of tax incentives to soften the effect of these increases. In addition, families who choose to can also reduce their household expenditure by taking part in the federal governments clean energy programs, such as Solar panel installation.

Furthermore, the current government has pledged that these tax benefits and incentive schemes will be permanent and have been planned to increase as the scheme is rolled out.

What does the Carbon Tax do to My Energy Bills?

Simply. Yes. The Carbon Tax will increases the cost of providing energy to the customer home by increasing the cost to those within the supply chain. Most of Australia’s Electricity comes from coal power plants, who will greatly affected under the new Carbon Tax. Similarly the generators, retailers and distributors all will experience increases in running costs that will be evident on your total cost of your energy bill. The Government argues that there will be tax cuts (and) to help Australians bear the burden of the Carbon Tax sting. However consumers might have to wait till the end of the financial year before they see any of their money back. With many Australian’s already strangling to keep up with their sky high energy bills, it’s hard to see how some are going to keep up. Another reason that Australian need to continue to look for a better deal.