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The carbon tax program outlined by the Gillard Government is so generous that it borders on being too good to be true... or a bribe to get the system through. The Government has gone out of its way to ensure most Australians and businesses will feel very little impact of the carbon tax impost with compensation covering any pain.
The most intriguing initiative is that the first 9 months of compensation will be paid in advance. The tax will start on July 1 next year but the first 9 months will be paid next May/June.
In a nutshell;
- 4 million Australian households will make a 20 per cent profit... that means they'll get 20 per cent more compensation that what their costs will go up.
- 2 million households will have their costs covered.
- 2 million households will make a loss because they won't be fully compensated.
- 700,000 of the richest households won't get any compensation at all.
THE CARBON TAX
- $23 a tonne
- for average households costs will increase $9.90 a week but compensation will be $10.10
- 9 out of 10 households will receive assistance... and 2 out 3 of those households will receive enough to cover the extra costs.
- 500 companies and 3 million households will be worse off.
- aim is to reduce emissions to 5 per cent below year 2000 levels by 2020 and 80 per cent below 2000 levels by 2050.
- electricity generates a third of our emissions.
ECONOMY
- Budget will take a $2.68 billion hit this year and $400-500 million/yr over next 2 years.
- will add 0.7 per cent to the CPI in it's first year... the GST added 2.5 per cent.
- electricity prices will go up 10 per cent, gas 9 per cent.
- will slow average income growth 0.1 per cent a year... the ageing population will slow income 0.3 per cent.
TAX BENEFIT
- tax free threshold tripled to $18,200 a year from July 1, 2012.
- regular wage earners below $18,200 will have no tax withheld.
- 1 million Australians will not have to lodge a tax return.
- but middle tax rate ($37,000-$80,000) will rise from 30-32.5 per cent... to stop over $150,000 earners getting a benefit
- all taxpayers under $80,000 a year will pay less tax.
- no Australians will pay more tax
FAMILIES
- with 2 children will up to $220 in extra Family Tax Benefit A and other families will get $110.
- extra $69 in Family Tax Benefit Part B
SENIOR AUSTRALIANS
- pensioners and self funded retirees will get up to $338 a year for singles and up to $510 a year for couples.
- will get lump sum advance of $250 in May-June 2012... basically getting 9 month payment in advance.
- 90 per cent of pensioners will make a profit... receive more compensation than be hit with extra costs
- Commonwealth Seniors Health Card (mainly self funded retirees) will get the same assistance as pensioners.
- Self funded retirees will get benefit of increase in tax free threshold.
SINGLES
- get the tax cuts.
- People on Assistance will get $218 for singles up to $390 for couples.
SMALL BUSINESS
- small business instant asset write-off threshold will rise from $5000-$6500
- no extra paperwork
- no compensation for increase in electricity costs ... go up 10 per cent.
NEW FUNDING
- $10 billion Clean Energy Finance Corporation
- $3.2 billion Australian Renewable Energy Agency
- $200 m Clean Technology Innovation Program.
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285 Comments
Ladies & Gentlemen. Pls listen carefully. Australians are a nation of INACTIVE ARMCHAIR CRITICS. YOU WILL NOT STAND UP FOR YOURSELVES EVEN WHEN DEATH IS LOOKING YOU IN THE FACE! Cost of living here is set to double in the next 5 years but all of you are so AFFLUENT and taught to be IGNORANT, that $1000 per week of your(average) wage will disappear like water, and you will ACCEPT IT! When will you learn...Shut up and look at the facts. Bread, Milk, Vegetables already costs too much. You will starve very quickly as a nation unless you stand up and take action. Wake UP! Overseas investors have moved in and are taking your resources. In 20 years or less, you are finished. Carbon Tax will recoup some of the money you've lost to overseas companies, and it will make life a little easier for some, for a little while anyway. Buy a tent people, learn to live with the land, cause at this rate, you may be growing old in shanty towns...
ReplyThis ALP government promised no carbon tax before the election. Now this ALP government breakes its promise to the electorate and introduces a consumption tax which doesn't discriminate between rich and poor Australians, the difference compared to the GST is this tax is based on the carbon emitted by goods and services. Never trust the ALP.
ReplyThis tax will benefit the environment as companies will have to find energy efficient ways to reduce their carbon foot print, thus saving on their energy costs. Secondly Aussies will be better off as they will get a tax relief. The rich will help to foot some of the bills which is quite fair and socically responsible. I am sure the 4 Bank CEO's with their multi million dollar salary wont mind! I just hope individuals will try to cut down on their household expenditure and energy consumption too. The planet is in need for repair and I do believe the govt is trying its best to help heal the world and create jobs in less carbon producing industries, like geothermal, wind power and solar power. Big oil companies will be forced to move in that direction too faster before it is too late.
Replyhehehe.. sorry cant stop.. i am single, no kids to drain the system, i work on $75,000 year, 51 y.o.. i love paying tax.and tax and tax... not one policy from any party for single people. we are the majority between 18 and death. oh you can brand us as widowed or pensioner or divorced.. but single males and females with no kids are the majority.. and we get nothing but tax.. so well done polies.. time to cash up and fly this biased, discriminated economic system.. oh but i will return for my free medicare health checks every few months.. hey i have paid for the system so time to start getting something back!
ReplyNow this tax has hit land fill sites. Council Rates will now go up to cover extra charges for rubbish collection. The list will go on and on. The compensation offered to some is just the 'candy' before the 'medicine' has to be taken. We need to be scared, very scared. This is going to cost us all dearly with no effect on polution reduction. Julia will have money to spend though.
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