It’s been a long journey, people, from the days when there was not going to be a carbon tax to now, when there very much is going to be a carbon tax. So what will it all mean?
Ask political reporter Gemma Jones in this Cover It Live, or head to news.com.au where they’ll have all the details and analysis.
Share your thoughts above in the live blog, or below.
So far we’ve heard Treasury modelling shows the price of the typical $200 shopping trolley will increase by less than a dollar, and that nine in 10 families will be compensated for the carbon tax, which will affect 500 heavily polluting companies. Some will be over-compensated.
Midday
The Government has confirmed a $23 a tonne carbon tax, which will increase 2.5 per cent a year for the first three years, after which Australia will switch to an emissions trading scheme. The cost to the average household will be $9.90 a week, and the compensation to the average household will be $10.10 a week. Eight million households will be compensated. There will be a $300 annual low-income supplement, support for self-funded retirees, jobs packages and industry support.
Prime Minister Julia Gillard says the climate change science is in, and we need a price on carbon for a clean energy future.
She says they are using the carbon tax as an opportunity to reform the tax system. The tax-free threshold will be tripled to more than $18,000, and there will be tax cuts for those earning up to $80,000.
You can get more information and an estimate of how the tax will affect you here.
12:30 pm
Ms Gillard sounds confident the package will go through Parliament. “We are going to get this done… this is the package that will start on the first of July next year,” she says.
Says advertising campaign will assist people to “digest” the plan.
12:40 pm
Ms Gillard is asked about those who’ll be worse off. “Yes, there are households who don’t get assistance. There’s no money tree. The Budget’s got to add up,” she says.
“We have directed assistance to those families and Australian who we think need it the most.”
1.10 pm
Blackout forces The Punch to relocate to the pub.
2.20 pm
Consumer group Choice says it accepts the impost on consumers appears modest, and warns companies against price-gouging.
2.37 pm
Opposition Leader Tony Abbott has responded. He says:
The Labor-Green carbon tax will drive up prices, threaten jobs and do nothing for the environment. Australians will pay more for everything under Julia Gillard’s carbon tax – the biggest and most punitive carbon tax in the world. Australia’s forgotten families are already struggling and the carbon tax will make a bad situation worse with a $515 a year hit on their cost of living. And that’s just for starters.
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