Treasury releases carbon tax cost estimates
By Sabra Lane and staff
Updated
Treasury documents predict householders could pay more than $860 a year under a $30 a tonne carbon tax.
However, the documents released under Freedom of Information (FOI) laws do not estimate the size of the promised compensation for businesses and households.
Many of the 29 documents are heavily censored; one 39-page Treasury minute about electricity pricing contains only a few sentences.
They show electricity prices would rise by $218.40 annually for the average household, gas by $114.40, petrol by $187.20 and food by $88.40.
Adding impacts to other goods and services, the total added cost per week of a $30 carbon tax would be $16.60, if fuel were excluded under the plan.
But if fuel is included in a carbon pricing scheme, the annual cost to households is $608.
A $40 per tonne carbon price would add more than $1,100 per year to a household budget.
The Federal Government has promised the money collected by the tax will be used, in part, to offset the price rises.
One of the Treasury documents suggests direct cash payments to households are best - in part because they would help counter community concern about cost-of-living impacts.
In a joint statement, Treasurer Wayne Swan and Climate Change Minister Greg Combet say it is too soon to speculate on cost-of-living impacts as the compensation package has not been finalised.
"No final decisions on the starting price or assistance have been taken and therefore it is far too early to speculate on any potential price impacts," the statement said.
"Until the final design and modelling have been settled, anyone who uses these figures to scare families about prices is engaging in a dishonest, misleading scare campaign.
"The Government has committed to use every cent raised by the carbon price, which will be paid by the biggest polluters, to support households, support jobs and tackle climate change.
"We will continue to consult with the community over the development of the carbon price."
No guarantees
But the documents also show a carbon tax will not guarantee that any emissions outcomes will be reached, possibly forcing the Government to buy international permits in order to meet its national commitments to cut carbon emissions by 2020.
One Treasury minute says the carbon pollution outcomes under a tax, or a fixed-price start, would be uncertain.
It goes on to say if carbon pollution levels exceed our national targets, then the Federal Government could purchase international units to enable Australia to meet its international commitments.
Opposition Leader Tony Abbott says the Treasury figures show the "extra burden" a carbon tax will be put on families.
"This just demonstrates that the Government has known all along that its carbon tax won't clean up the environment but it will clean out your wallet," he said.
"That's right and this is $863 a year in extra burden that the Australian people shouldn't have to pay. This is an $863 a year hit on families' cost of living.
"Families are doing it tough as things stand. They don't need a bad situation made much, much worse by Julia Gillard's carbon tax."
Meanwhile, the Australian Chamber of Commerce and Industry (ACCI) has formally adopted a position to oppose the carbon tax.
At their general meeting, all 30 member groups passed a resolution to reject the Government's carbon price plan.
ACCI chief executive Peter Anderson says they are concerned the carbon tax will disadvantage Australian industries.
He says business owners cannot afford the tax.
"Whilst those organisations are at the discussion table with the Government, they're not prepared to trade off the competitive interests of Australian industry," he said.
First posted
Australian Prime Minister Julia Gillard

Treasury documents released today under the  (FOI) act reveal that Australians could face up to an 863 rise  in household costs per annum if the  proceeds with its plans to .

The documents reveal an a annual price rise of $218.40 for electricity, $114.40 for gas, $187.20 for petrol and $88.40 for food for the average household. The treasury modelling was based on a $30 carbon tax, but also estimated other prices such as a $40 tax which predicted a rise of over $1,100 to the average household's annual budget. However, they do not take into account the compensation deals and offsets promised by the government if a price is put on carbon. 

After viewing the treasury modelling, Treasurer Wayne Swan and Climate Change Minister  released a joint statement saying without the finalization of compensation packages it is too early to predict price rises. "No final decisions on the starting price or assistance have been taken and therefore it is far too early to speculate on any potential price impacts," the statement said. Until the final design and modelling have been settled, anyone who uses these figures to scare families about prices is engaging in a dishonest, misleading scare campaign."

Opposition Leader Tony Abbott said the figures demonstrated the toll a carbon tax would have on Australian families. This just demonstrates that the Government has known all along that its carbon tax won't clean up the environment but it will clean out your wallet," he said. That's right and this is $863 a year in extra burden that the Australian people shouldn't have to pay. This is an $863 a year hit on families' cost of living. Families are doing it tough as things stand. They don't need a bad situation made much, much worse by Julia Gillard's carbon tax."

The  (ACCI) has also officially opposed the adoption of a carbon tax. A resolution was passed by all 30 members at their general meeting to reject the Federal government's plan.    


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