The Gillard Labor government’s carbon tax plan confirms concerns that there’ll be inadequate compensation now and in the future.
“A carbon tax of $23 a tonne will be an additional $515 a year on a typical family’s cost of living and that’s just for starters,” Nationals Senator Fiona Nash said.
“Even on the Government’s own figures, more than three million Australian families will be worse off and that’s before this carbon tax just goes up and up.
“Many of these families live in regional Australia. For example, a single income family on less than average weekly earnings with one child aged under five is worse off under the government’s package.
“These are not rich families. The problem with this toxic tax is that it is an attack on the aspirations of decent Australians who just want to get ahead and make a better life for themselves and their families.”
Senator Nash said the carbon tax is bad for regional Australia on so many other fronts:
- Australian Farm Institute research shows the average farmer will incur an additional $1500 a year in costs under a $23/tonne carbon price;
- The fuel tax credit for heavy vehicles will be cut by almost seven cents per litre from July 2014, costing the industry and its customers $510 million in 2014-15 alone;
- The fuel tax credit for rail and marine operators will be cut by 6.21 cents a litre from 1 July 2012 again leading to increased transport costs;
- Small businesses, already on tight margins, face increased costs with no direct support;
- A carbon tax on aviation fuel will increase airfares, affecting domestic and regional tourism;
- It will cost an extra $5000 to build a modest home;
- Independent modelling commissioned by the Australian Coal Association found 18 mines are at risk of premature closure, costing 4700 direct jobs and more in supporting industries; and·
- The Service Stations Association warns the cost of running a petrol station will go up and will be passed on at the bowser.
While the carbon price will start at $23/tonne, after three years the price will not be fixed when it moves to an Emissions Trading Scheme. It will float in line with market prices and will continue to rise. “
The government needs to explain clearly how it will adequately compensate Australians under an ETS,” Senator Nash said.
“The government’s own modelling forecasts the price will increase to $29/tonne in 2016 and $37/tonne in 2020. Bear in mind the Greens have already said it will take $40 a tonne to move from coal to gas and have also flagged the possibility of $100 a tonne carbon tax.
“It is the Greens that are controlling the puppet Prime Minister, who knows where this carbon tax will end up.
“Even at $26 a tonne, Access Economics estimates it would cost about 126,000 jobs by 2020, mostly in regional Australia. This is despite Australia emitting only 1.4 per cent of global emissions.
“Regional Australians will be placed under enormous financial strain for nothing. A carbon tax won’t make the slightest bit of difference to the climate.”
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