Over half the money raised from the carbon price is being used to assist households.
Everyday living prices
It is expected that in 2012–13, the carbon price will increase the cost of living by 0.7 per cent, which is only 70 cents in every $100 spent.
Q. Who is eligible to receive extra assistance for essential medical equipment?
Q. How can I save money by upgrading to an energy efficient pool pump?
Upgrading old pool pumps to a minimum 5-star energy efficient pool pump can save the average pool owner around $300 each year. Energy efficient pool pumps minimise electricity use by adjusting energy levels depending on the function being performed, and are up to 80 per cent more efficient than a standard pump.
Individuals do not directly pay the carbon price. It is a charge on our biggest polluting businesses.
However, if those businesses pass on some or all of their costs, it will mean a small increase to the cost of your regular groceries.
It is expected that in 2012–13, the carbon price will increase the cost of living by 0.7 per cent, which is about 70 cents in every $100 spent. An independent study on the impacts of the carbon price was undertaken by CSIRO and AECOM, which was commissioned by The Climate Institute in partnership with consumer advocate CHOICE and the Australian Council of Social Service.
This is much smaller than the impact from when the GST was implemented, which increased prices 2.5 per cent, and much smaller than annual inflation which is generally between 2 and 3 per cent per year.
This will mean on average, household costs will rise by $9.90 per week. This includes an average increase of $1.50 per week for gas and $3.30 per week for electricity. There is no increase to household fuel costs.
Assistance payments have been made to many households help manage these extra weekly costs.
The assistance is permanent, and after taking it into account, many households, particularly low and middle income households, will be better off.
How will everyday living prices change?
The cost of some grocery items may increase from 1 July 2012 because of the carbon price. However these price rises are expected to be modest.*
On average, households will experience an average increase of 0.7 per cent in prices from 1 July 2012. This means an increase of 70 cents for every $100 spent on groceries.
It is expected that:
- Milk and bread will cost less than 10 cents extra per week.
- Fruit and vegetables will cost around 10 cents more per week.
- Meat and fish will cost around 10 cents more per week.
* Source: The impact of a carbon price on household expenditure as modelled by the Commonwealth Treasury for the Clean Energy Future Package announced on 10 July 2011 by the Australian Government. Figures are estimated average price impacts across all households following introduction of a $23 carbon price in 2012-2013 by Consumer Price Index (CPI) subgroup.
How will the carbon price impact my electricity prices?
The carbon price means that the average Australian household pays about $3.30 a week more for electricity.
See our comprehensive overview of how the carbon price affects Your electricity bill.
Will I pay extra at the petrol pump because of the carbon price?
The carbon price does not directly affect household fuel costs. Car fuel used by households and light on-road commercial vehicles are not subject to a price impact as a result of a carbon price.
Agriculture, forestry, fishing and for a limited period, heavy on-road transport vehicles, who use fuel will also not be subject to a carbon price.
Businesses that make building materials for houses such as concrete and steel receive business assistance from 1 July 2012. This means that price increases in house prices will be modest.
How will I be protected?
If you see prices increasing dramatically and are told it’s because of the carbon price, you can call the Australian Competition and Consumer Commission (ACCC) to discuss your concerns. The ACCC’s Carbon Price Claims Hotline can be contacted on 1300 303 609.
How will the Government help?
Since May 2012 assistance has been provided to those who need it the most, through the Household Assistance Package.
Payments in May–June 2012 were paid to more than six million Australians—including families and parents, seniors and individuals who already receive assistance from the Australian Government.
This was followed by new tax cuts from July 2012 which increased the tax free threshold from $6000 to $18,200, benefiting millions of Australians.
Millions of Australians with taxable incomes up to $80,000 are receiving tax-cuts of $300, giving you more money in your pay packets.
Increases in regular payments are ongoing from March 2013, benefiting more than six million Australians.
Being energy efficient can put your household even further ahead. LivingGreener shares the many small changes you can make in your home.