Revenues from Carbon Tax to Help Low-Income Families
April 13, 2011 Taxation in Australia
The government of Australia is claiming that its planned carbon tax and emissions trading scheme will ultimately be of great benefit to the people of the country, especially retirees or people on low incomes.
While speaking in an interview on April 13th the Climate Change Minister Greg Combet assuranced that at least half of the revenues raised by the upcoming carbon tax would be used to fund economic aid projects for low-income households.
“We expect that millions of households will be better off under the carbon price arrangements and the assistance will be permanent” told minister to Australian radio. The exact level of assistance is still to be announced but most of the revenue would go to supporting families from price rises caused as companies passed on the emission experiences on consumers.”
Currently it is estimated that in the first year of operation the carbon tax collection will raise AUD 11.5 billion (EUR 8.37 billion). The remaining carbon tax revenue will be utilized to help ease the transition to the use of cleaner fuels sources and support jobs in the industries affected by the new tax. The Australian government plans to introduce a carbon tax from around June next year, with an emissions trading scheme to follow within five years.
Photo by Mushroom and Rooster