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Australian Carbon Tax 101


While carbon price and carbon tax is all over the news, many people actually dont know  what its all about specifically. Below is a guide  and FAQ to get your facts  and info on the carbon price in Australia  and its effect on the common man  as well as business

carbon tax and price australia Info File Guide fact sheet

What is the carbon price or  carbon tax ?

The carbon price is not a tax on  Australians, but a  tax levied on 260 companies and  34 councils. You might ask why  councils ?, because councils deal will landfills and waste  which adds to pollution they will have some carbon price to pay.

Who is exempt from the carbon price (tax) ?

Agriculture – carbon price will not apply for agricultural emissions

Family car – Emissions from the family car and light  on road vehicles

How ill the carbon price  effect the common man ?

Some of the costs borne but  the top companies having to pay the carbon tax will be passed onto consumers  which will most likely be in Electricity , GAS and FOOD

According to modelling done by CSIRO _ AECOM on likely increase in prices due to this

Electricity bills could increase by $2.80 aweek

Gas By 0.40 cent a week

Food by  $1.20 a week


Compensation for the Utilities price rises to common man

$15 billion will be allocated to low and middle income households in the form of tax cuts and increased government payments.

Household assistance – Average assistance of $10.10 a week, and means 6 million households will be either no worse off or slightly better off.

From 1 July, the tax free threshold has been raised from $6000 to $18,200, which will mean a million people no longer having to fill out a tax return.

It will be raised again by $1200 to $19,400 in 2015-16.

1.7% rise for pensioners and recipients of the Family Tax Benefit, delivered as advance payments in May and June.


Business and carbon tax


Very few employers are said to be directly affected by the carbon tax,  with only 500 large businesses said to be affected directly.

The government has allocated $9 billion to the industries that will be hit hard  and  who employ a lot of people in Australia . These companies will be assisted due to keep them competitive with their international competitors during this adjustment period. Its mainly Heavy industries like , Steel, aluminium, and cement manufacturing .


Where does the carbon tax received  go ?

While the government is collecting this tax  to develop clean energy, a significant part of this money received will be used to cerate new Clean energy technologies and  create new jobs in this sector

This includes the

$10 billion Clean energy  Finance corporation

$1.2 billion Clean technology program


Carbon tax , GST and tax return ?

The carbon tax  has nothing to do with individuals  and will not appear on you tax return or in a bill that you receive from a retail shop ( shopping bill). It is only a tax on large 500 companies

There will be some initial price rises to utilities, food and some other goods as companies pass on the costs of the carbon price to consumers.
The Australian Competition and Consumer Commission (ACCC) will be monitoring price rises during this period . Any unfair price rises can be reported on their hotline number is 1300 303 609.


Calculator the impact of the carbon price on my family / household?

There is an easy online tool to calcuate the impact carbon price on your family. The carbon price tool is based on independent analysis undertaken by CSIRO and AECOM, based on research commissioned by The Climate Institute,  Go to http://www.yourcarbonprice.com.au/


Which companies and industries pay the carbon tax ?

Companies and councils individually generating more than 25,000 tonnes of carbon dioxide a year will be required to pay for their emissions under the carbon pricing mechanism.

Companies that directly emit greenhouse gases, such as power stations, mines and heavy industry, and some public authorities (councils)responsible for emissions from landfill

Why carbon tax in Australia ?

Before the introduction of the price on carbon or carbon tax , big companies could pollute as much as they liked for free. But the carbon price puts an economic  and dollar value on pollution and treats it as a cost of doing business.

It works this way by requiring large companies that pollute  to buy a permit valued at $23 for every tonne of carbon pollution they emit into  Australia. The more emissions, the higher the financial cost for the polluter. This will help us not get to a stage  like other countries like China  and India  who are facing major pollution problems and need to invest billion of dollars in trying to solve this problem.

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