Study Shows Impact on Households of Carbon Pricing
Tuesday, 15th November 2011 at 12:05 pm
An independent analysis of the carbon tax shows that it will have a smaller than anticipated impact on household costs, according to a report released by consumer advocate CHOICE, the Australian Council of Social Service (ACOSS) and policy research organisation The Climate Institute.
The CSIRO-AECOM research commissioned by the groups calculates Australia's carbon pollution price will add 0.6% to inflation in 2012-13, less of an impact on the economy than estimated by Treasury modelling and the financial impact of events such as Cyclone Yasi.
The CSIRO-AECOM study compared the effect of the carbon pollution price with other inflationary events such as the introduction of the GST, Cyclone Yasi and the mining boom and found the impact on prices of the 2001 GST was more than 4 times bigger (2.5%) than the carbon price, while fruit prices, led by bananas, spiked by a massive 70% after the damage of Cyclone Yasi.
Together with pricing research, The Climate Institute, CHOICE and ACOSS have released an online calculator for households to weigh up their own costs, financial support and potential savings. (www.yourcarbonprice.com.au)
ACOSS CEO Dr Cassandra Goldie said, "Communities are looking for real information about their day-to-day costs and savings. For example, the carbon pollution price initially translates into 2 cents extra for bread and a litre of milk, 11 cents for a leg of lamb and 14 cents for a weekly spend on fruit and vegetables but once you factor in ongoing government assistance, those weekly costs are largely covered and most people end up with money in their pocket.”
Matt Levey, Head of Campaigns, at CHOICE said the research was “commissioned in part to combat myths householders have around carbon price – it’s usually a sense of being overwhelmed by the political debate.”
Already there have been reports of unscrupulous business “adding 20% surcharge to slabs of beers eight months out from when the tax is being brought in and taxi drivers in Melbourne that were charging passengers a carbon levy,” said Mr Levey.
He told Pro Bono Australia that he hoped the new consumer calculator would “put the policy in perspective.”
“The calculator has been received well so far – our social media has shown that people will share it and spread the word and there’s a general thirst for information that isn’t framed as part of a political agenda."