RESIDENTS of the Lithgow region have been hearing all about the carbon tax and how it will affect them … for months now.
Some of the information which has been relayed is factual however the gossip residents have been hearing has put fear into many.
With the carbon tax coming into effect from tomorrow people are being warned of the scams likely to arise.
It is predicted many businesses may pass on the tax plus a little bit more and consumers will not really know how legitimate price increase will be.
Choice, the people’s watch dog, have released their latest figures on what the carbon tax will cost you.
The research was commissioned by The Climate Institute in partnership with Choice and the Australian Council of Social Services, who together launched the project last November.
The study outcome shows Australia’s carbon price will add 0.6 per cent to inflation in 2012-13 and a second impact of up to 0.1 per cent in 2015-16.
This percentage is measured on all businesses passing on the full cost to consumers.
Good news to the treasury office as their estimate had inflation increasing by 0.7 per cent and 0.2 per cent respectively.
The carbon price won’t come out of the weekly pay packet directly, nor will it appear on tax returns or on a receipt like the GST.
The study shows an average Australian household will see its living expenses increase by $9.10 per week on average.
Electricity bills increase by up to 10 per cent, or around $3.20 per week for the average household.
And the weekly grocery shop will see the average bill go up $1.20.
Milk will increase two cents for a one litre bottle while the fruit and vegetable bill will increase by 14 cents.
When the carbon tax comes into effect, about 300 of the biggest polluters will pay a flat rate of $23 for every tonne of carbon emitted.
This amount will apply for three years and then the price will be set by the market.
For more information head to www.choice.com.au and follow the prompts.