Impact of carbon tax on you
How much will it cost and how does it work?
WHILE some see it as a load of hot air, the reality is the carbon tax which took effect nationwide on Sunday will affect everyone.
The carbon tax was introduced by the Federal Government in a bid to reduce Australia’s carbon pollution by 159 million tonnes per year - the same as taking 45 million cars off the road.
Only 500 of the country’s largest polluters will be taxed at $23 per tonne of carbon emitted, however, these large companies have already started passing the costs down the line to the consumer.
Average household costs are expected to rise by $9.90 per week as a result.
The cost of freight and transport has already increased, petrol and gas not used for vehicles has increased and electricity is set to rise in Queensland by 13.1 per cent.
To counter this, the Federal Government has provided financial assistance to nine out of 10 households through personal income tax cuts and increases in pensions and allowances, as well as other measures.
This includes tripling the tax free threshold to $18,200, which will increase again in 2015 when the carbon tax is converted to an emissions trading scheme.
The emissions trading scheme is when the Government puts a cap on the total amount of pollution that can be released each year and businesses will compete for and trade permits and prices.
The tax will not apply to agriculture and farmers will get credits for each tonne of carbon pollution which can be stored or reduced on the land.
Petrol, light on-road vehicles and transport fuel is excluded from the carbon tax but heavy transport will start paying carbon tax in 2014.
Small businesses will get an asset write-off concession to help lower costs and the instant asset write-off for small businesses with a turnover of less than $ 2 million a year will rise to $6500.
The tax is expected to raise around $24.5 billion over three years and over half of that will go back to households in the form of increases in family payments, pensions and tax cuts and those on a pension or are self-refunded retirees will get up to $338 extra per year.
How will the carbon tax affect your business? Email the Gazette at firstname.lastname@example.org