Ashlee-+Carbon+Tax+Research

The idea is that polluters will pay per tonne of carbon they release into the atmosphere. This cost will initially be set at $23, and increase gradually until 2015, when we will shift to a trading scheme that will let the market set the cost. This is widely thought of as the most effective and least costly mechanism to reduce carbon output and reduce the level of climate change that is occurring. Right now, when you purchase a product that relies on carbon-intensive materials or manufacturing processes, the price you pay does not represent the cost incurred by the environment. The iron ore used to create the product could be sourced from the highest polluting mine in the world, the electricity used to power the manufacturing plant could be provided by the dirtiest coal mine in the world, and the trucks used to transport the product to its final destination in a supermarket could run on the dirtiest fuels in the world, and it would make no difference to the price. With a price on carbon, this equation would change. The amount of carbon pollution involved in producing a product would start to be factored into its final price. Products produced through dirty processes will become more expensive, thereby making it possible for other products produced through cleaner processes to compete on price.

[]

Ashlee

Millions of families will receive new tax cuts and increases in cash payments under the Government’s carbon price plan. In fact, 9 out of 10 households will receive tax cuts, increased payments, or both. • All families receiving Family Tax Benefit Part A will get an increase, worth up to $110 per child per year. • All families receiving Family Tax Benefit Part B will get assistance worth up to $69 per family per year. • All taxpayers with annual income below $80,000 will get a tax cut, with most receiving at least $300 per year. In short, no one will pay more income tax as a result of the carbon price package. These tax cuts are on top of any increases in Family Tax Benefit. Single income families where a primary income earner has a taxable income between $68,000 and $150,000 will also receive a new supplement of up to $300 annually. Assistance will be permanent, and will start before the carbon price. The online [|household assistance estimator]will help families understand the impact that a carbon price is expected to have on the prices of goods and services, and the assistance that is being provided.

[]

Ashlee

Basically, the Carbon Tax is an additional cost imposed on those businesses which emit carbon dioxide. It’s a cost of $23 per tonne to buy a pollution permit, and companies will be required to pay for the amount of pollution that they create. At this stage as announced by the government it will be levied against around the top 500 polluters in Australia and the scheme will be overseen by a new organisation – the Climate Change Authority - commencing on 1st July 2012. For the first three years the carbon tax will be a fixed dollar amount, before transitioning to an emissions trading scheme in 2015. The purpose of the Carbon Tax is to discourage pollution and encourage high-polluting companies to invest in and develop “green” alternatives. Logically however, the companies who will be faced with this extra expense will pass those costs on to the consumer wherever possible. This is the way in which the Carbon Tax will affect everyday families. The government has calculated that the average family will be $9.90 per week worse off as a result of the carbon pricing. However the average family will receive $10.10 per week in additional assistance, meaning that in theory there should be little or no difference. Specifically, according to the government’s calculation, 4 million households will be better off, 6 million will break even, and around 8 million will be worse off. Realistically the impact on individual families will depend on their income and their spending patterns. Firstly spending: According to the government’s “Clean Energy Future Plan”: • Food is estimated to rise by less than $1 per week for typical households • Electricity costs are expected to rise by around $3.30 per week • An additional $1.50 per week on the average gas bill • Petrol at the bowser should not rise although holiday travel will probably rise as domestic aviation will be liable for the tax.
 * How it works.**
 * How it will impact Families.**

[]

Ashlee