Carbon Tax Raising Cost of Living to Households

The Government is to bring in a fixed carbon price in July next year which will then convert to a floating market-set price under an emissions trading scheme by 2015-2017.

The Sydney Morning Herald states: Households could pay $863 a year more for food, gas, power and petrol under a $30 carbon price, new Treasury analysis shows. The Gillard government has promised compensation for households to assist with - and in many cases cover - higher bills due to a carbon tax.

Food Prices Affected by Carbon Tax

FOOD prices are set to rise under the Federal Government's carbon tax with some of the nation's largest food retailers expected to be hit with potential carbon bills of millions of dollars a year.
The federal Government has admitted prices will rise
The United Retail Federation survey of 525 members found 83 per cent of food and grocery retailers would pass on a carbon price and 78 per cent said it may affect jobs and staff hours.

Leader Tony Abbott yesterday said he would "'wind back" the scheme if the Coalition won the next federal election.
"Not only will Julia Gillard's carbon tax increase the price of electricity and petrol, it is also a tax on food."

Electricity Prices Affected By Carbon Tax

Treasury modelling in 2008 suggested a $23 a tonne carbon price would increase household electricity bills by around 20 per cent. Today the government is looking at settting a tax on Carbon at $26 a tonne

Victoria has warned that its budget faces a slug under a carbon tax because the publicly owned State Electricity Commission could make losses to meet energy supply contracts on the Alcoa aluminium smelters.

Queensland Premier Anna Bligh has urged Julia Gillard to avoid "radical and extreme politics" that would shut the coal and gas industries in her state