Antinuclear

Most Australians will be better off under the carbon tax

Most shielded from carbon tax, say analysts Brisbane Times, May 11, 2012 – The federal government has “more than compensated” low and middle Australia for the carbon tax in this year’s budget, according to an academic body that last year found average households would be better off under the system. While large businesses rather than individuals would directly pay the carbon tax, the flow-on effect would see householders pay through the tax’s impact on petrol, gas and electricity prices.

Last October, the University of Canberra’s National Centre for Social and Economic Modelling found Australian households will be an average $2.50 per week better off under the federal government’s carbon package….. Last night, NATSEM principal researcher Ben Phillips said the additional announcements in Tuesday night’s federal budget made the package “very generous” for low income earners.
The “cash splash” included a $600 boost to family tax payments, a one-off school children cash bonus up to $820 and up to $210 for the unemployed, single parents and young people.
“Not only will they be covered for the carbon price, but they will be covered well in excess of that carbon price,” Mr Phillips said……
Commonwealth Bank economist James McIntyre said the CBA estimated about 80 per cent of Australian families were shielded from the impact of the carbon tax.
The crucial point was the tax cuts for people with a taxable income of $80,000, he said.
Mr McIntyre said in the 2009-10 tax year, 83 per cent of the population had taxable income below $80,000.
People earning between $30,000 and $65,000 will get a tax cut of $303 – equivalent to about $6 a week – and smaller tax deductions remain up to $80,000.
Mr McIntyre said that was why the government targeted that income level for tax cuts.
He said the federal government payments “over-compensated” many families and adequately compensated most.
“I think it over-compensates around 33 per cent of households, 40 per cent of households get about two-thirds of the compensation,” he said.
“And for the remaining households – above $80,000 – there is small compensation – but it covers around 15 to 20 per cent of the cost.”….  Details about payments to various recipients can be found in the fact sheets here.
http://www.brisbanetimes.com.au/queensland/most-shielded-from-carbon-tax-say-analysts-20120510-1yfbm.html#ixzz1ubqMRq8a

May 11, 2012 - Posted by Christina Macpherson | AUSTRALIA - NATIONAL, politics