Price impacts of a carbon price
The carbon price will be paid by around 500 of Australia’s largest polluters. They will need a permit for every tonne of carbon pollution they produce. The cost of that permit is the carbon price.
Some businesses will pass on the carbon price, leading to modest rises in prices. In 2012-13, it is expected to increase the cost of living by 0.7 per cent, as measured by the consumer price index (CPI).
Compared to other price increases, the impact of the carbon price will be modest.
To put this increase in context, this impact is much smaller than the:
- 2.5 per cent increase from the GST and related tax changes
- 2.9 per cent average annual inflation between 2001-02 and 2009-10.
Average weekly household expenditure is expected to go up around $9.90. On average, households will receive $10.10 per week in assistance. You can estimate your assistance at the online estimator.
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