Many Yass Valley families who pay the new carbon tax next year will be typically fully compensated by tax cuts and government rebates, and may even find themselves with a few extra dollars in their pocket, according to an independent carbon tax calculator tool and research report launched this week.
Consumer Advocate CHOICE, the Australian Council of Social Service (representing low income households) and policy research organisation The Climate Institute launched the independent online calculator and website yourcarbonprice.com.au. It incorporates research conducted by the CSIRO and AECOM.
The five-minute online presentation takes the viewer through a visual flow-chart with snippets of information about the carbon tax scheme before asking for your family income and energy spending information.
The report, (ITALICS)The Carbon Price and the Cost of Living,(ITALICS)found country residents would typically pay less than their city counterparts when the national carbon tax is introduced in July 2012.
It said the average family living outside of a capital city would see their weekly costs rise by around $8.70 per week, compared to $9.40 for city dwellers. This would be fully offset for many households by tax cuts and other assistance introduced as part of the reform.
The report estimated the carbon price would result in an overall increase in expenditure of $9.10 per week in 2012-13, less than the Treasury estimate of $9.90 per week. This estimate applied the price changes to the latest household expenditure data. Price impacts were made up of increases of $3.20 in electricity and gas costs, $1.20 in food costs, and $4.70 in other costs (such as clothing, recreation costs).
CHOICE spokesperson Matt Levey said many who were confused about the reform would find the research useful.
"After such a ferocious political debate, Australians can be forgiven for feeling confused about what the carbon price will really mean for everyday items such as food and electricity. This confusion also increases the risk of businesses passing on unrelated costs to consumers. That's why this research is so important, allowing households to work out costs and savings for themselves, with figures and information independently and rigorously researched by the CSIRO and AECOM," he said.
It compared the effect of the carbon pollution price with other inflationary events such as the introduction of the GST, Cyclone Yasi and the mining boom, and found that the impact on prices of the 2001 GST was more than four times larger (2.5 per cent) than the carbon price, while fruit prices, led by bananas, spiked 70 per cent after the damage of Cyclone Yasi.
The Australian Competition and Consumer Commission warned it would penalise any businesses caught inaccurately attributing higher prices to the carbon tax. It launched a guide this week for businesses to help them better understand their rights and obligations when making claims about the impact of a carbon price.
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