The most important thing to remember about the new carbon tax is that it’s not a direct tax – it doesn’t come out of your pay or appear as an item on your shopping docket.
The carbon tax is only levied on the 400 to 500 businesses which emit a lot of carbon dioxide (or pollution in layman’s language).
These businesses will need to buy and surrender to the Government a permit for every tonne of pollution they produce. The initial price for these permits is $23 a tonne.
If businesses lower their pollution, the amount they pay will be less. This is how the carbon price provides an incentive for businesses to invest in cleaner ways of doing business and to operate more efficiently.
This month, the Carbon Tax has impacted 3 areas:
– A price on carbon emissions;
– Changes to some income tax rates; and
– A range of compensation payments from the federal government.
The government says that nine out of 10 households will get assistance to counter the effects of the carbon tax. According to its figures, the estimated average cost impact is $9.90 a week, while compensation is $10.10 a week.
The household impact of the tax, before any compensation, ranges from $2.25 a week ($117 a year) for an individual receiving $12,700 in government benefits, to $19.80 a week ($1031 a year) for a couple who have one child and earn $100,000 each a year.
An individual on $200,000 a year will pay about $18.30 a week ($951 a year) – and won’t receive compensation.
Compensation will be delivered via tax changes and increased government payments.
Detailed lists of household outcomes are available in the Supporting Australian Households document
While over half the money raised under the carbon price will be used by the government to cut taxes and increase payments to assist households, the rest will be used to support jobs and competitiveness and build a new clean energy future.
Story by Judith Bence, story source: www.yonderr.com.au