Over half the money raised from the carbon price is being used to assist households.
Top 10 things you need to know about the carbon price
Pricing carbon is a major step towards a clean energy future it is the most efficient way to cut pollution and build a clean energy economy for the future.
Q. I received a flyer explaining how the Government will provide households with $10.10 to help electricity bills. Will my household receive this payment & how will it be paid?
The figure of $10.10 refers to the average amount of assistance households receive through tax cuts and increases in family payments, pensions and benefits. This assistance is part of the Government’s Household Assistance Package, and eligible Australian households have already received it. The payment varies from household to household. For an estimate of your assistance, visit the Household assistance estimator.
Q. What can I do if I think a shop or business has raised their prices too much?
You should contact the Australian Competition and Consumer Commission (ACCC) if you think a business is attributing significant price rises to the carbon price. The ACCC will investigate businesses’ carbon claims and has the power to issue infringement notices or take legal action against businesses suspected of breaching the law.
- Putting a price on carbon is the cheapest and most efficient way to cut pollution and build a clean energy economy for the future.
- A carbon price is not a tax on households or small businesses. Australia’s biggest polluters are now required to pay for the pollution they emit under the carbon pricing mechanism. Small businesses are not liable under a carbon price.
- More than half of the revenue raised from the carbon price assists households to help meet price impacts through tax cuts, increased family payments and pensions, benefits and allowances this assistance is permanent. With the rest of the money, the Australian Government is supporting jobs in the most affected industries and investing in our clean energy future.
- A carbon price cuts the amount of carbon released into our atmosphere by Australia’s biggest polluters. Less carbon pollution helps limit the environmental impacts of climate change. Australia will cut at least 159 million tonnes per year of carbon pollution by 2020 – that’s the equivalent of taking 45 million cars off the road.
- The carbon price starts at $23 a tonne in 2012-13. For the next two years it will rise in line with inflation and from 1 July 2015 the carbon price will no longer be fixed by the Australian Government but set by the market.
- Less than 500 of Australia’s biggest polluters are required to report on their carbon pollution.
- The carbon pricing mechanism covers the direct emissions of a range of large business and industrial facilities which currently emit at least the equivalent 25,000 tonnes of carbon dioxide a year.
- The Government is helping industries strongly affected by the carbon price to support jobs and competitiveness through programs such as the Jobs and Competitiveness Program, Clean Technology Program, Steel Transformation Plan and the Coal Sector Jobs Package.
- Australia is not acting alone on climate change. Countries like the United States, China, India and Brazil are also acting to reduce their carbon footprint.
- Voluntary action, including by Australian households and businesses, is an important part of Australia’s climate change strategy. The carbon price is just one part of the suite of measures under the clean energy future program.
For more information on the carbon pricing mechanism visit Carbon Price.
- What will a price on carbon mean for cost of living? (PDF 629 KB)
- How a carbon price works (PDF 629KB)