Australian minister sings to get out of trouble

The tax is set to decide the fate of the Prime Minister, Julia Gillard, who has promised to return the revenue raised via about A$30 billion worth of handouts over the next four years,. Her domestic support has plummeted since she broke her pre-election pledge and announced that she would bring in the tax.

Ms Gillard and her ministers have tried to defend the scheme, including several stunts to combat Mr Abbott’s long-running claims about the “toxic tax”.

The Treasurer, Wayne Swan, invited the media to a supermarket yesterday and bought 11 items at a cost of $35.30. He had bought the same 11 items on Friday for the same total cost. His grocery list included a packet of Weet-Bix cereal, which Mr Abbott had said would cost more under the tax. He also bought a $20 lamb roast to debunk claims by one opposition MP that it would rise to $100.

The tax is expected to lead to a 10 per cent electricity price rise, but the broader economic impact is likely to be negligible. The Treasury estimates it will add 0.7 per cent to inflation.

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