HOUSEHOLDS will start receiving extra family payments and pension increases as early as next May after controversial carbon tax legislation passed the Senate yesterday.
The nation’s new era of emissions pricing starts next July 1, and the Government will soften the financial blow by getting assistance flowing ahead of time.
But taxpayers will likely foot the bill for another advertising blitz to promote the tax — and $5 billion a year in compensating tax cuts and welfare — to a deeply sceptical electorate.
After the biggest legislative victory of her prime ministership, Julia Gillard hailed the passage of 18 Bills as a win for Australia’s children, the environment and the economy.
“Today Australia has a price on carbon,” she said.
“After all those years of debate and division, our nation has got the job done.”
Thunder burst on cue above Parliament House as jubilant Greens leader Bob Brown declared: “Even the heavens are clapping.”
But the Opposition said the sky was falling in and vowed to repeal the tax if it won the next election.
The legislation cleared its final Senate hurdle 36 votes to 32, but the Government’s challenge was only just beginning to make the unpopular tax work politically in time for the poll, due in 2013.
To that end, Ms Gillard did not rule out taxpayer-funded ads explaining compensation for about eight million low and middle-income households.
“It means less carbon pollution, it means more clean energy jobs and opportunities, it means more money in the pockets for families who need it the most,” she said.
The nation’s top 500 polluters will be penalised $23 for every tonne of carbon gas they emit for the first three years, with the market to determine the value thereafter.
Those same high-emission industries are expected to pass costs to consumers. The Government says its $10.10 average weekly compensation package will cover the $9.90 projected average weekly increase in household costs.
Government MPs privately expressed hope the Bills’ passage marked a turning point in the Government’s electoral fortunes.
Opposition Leader Tony Abbott, en route to the UK for a conservative parties meeting, said Australians had been “dudded” by a PM with no mandate to impose the tax.
“It shows who is really running the Government,” Mr Abbott said. “It’s not Julia Gillard, it’s Bob Brown and the commitment I give to the Australian people if we win the next election is that as sure as night follows day this tax will be gone.”
Repealing the tax would be no simple task, with Labor and the Greens likely to control the new Senate post-election.
Treasurer Wayne Swan said Mr Abbott had run away.
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BY THE NUMBERS
July 1 – carbon tax begins
$23 – price per tonne paid by top 500 polluters
$2.2 billion – amount of annual tax paid by five biggest electricity generators
$3.30 – average weekly increase in electricity prices; $1.50 for gas
80c – increase on a $200 basket of groceries
$9.90 – overall weekly cost of living increase for typical household
$10.10 – overall weekly compensation for typical household
$5 billion – in tax cuts and increased welfare payments each year
1.7% – rise in pensions
$110,000 – families earning more than this will feel the pain
$3 billion – industry assistance
160 million – tonnes of carbon pollution will be cut by 2020 under the scheme, equivalent to taking 45 million cars off the road
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