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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