Okay, so this is how my small brain understands the carbon tax.
Currently those who pollute do so free of charge and all of us suffer the consequences. From 1st July 2012 those who pollute will be forced to pay directly. This will level out the playing field for greener technologies, processes and products which will become more competitive in comparison.
Money seems to be what talks for most of us and making us pay a higher price for our more polluting choices should encourage greener choices and support the move to a greener economy.
The resulting cost increases many of these companies face from the new carbon tax will be passed on to us, the customer. However, the government has put in place mechanisms to divert much of the revenue raised from this tax to assist families.
What will those price rises be in terms of food, transport etc? Well, it is estimated that the carbon tax is expected to raise the consumer price index by 0.7%. Not a massive figure by any means.
An interesting article which recently appeared in the SMH discussed the effect of the carbon tax on the human psyche. The carbon tax won’t hurt much but we don’t want to know.
To find out more details about the carbon tax have a look at www.carbontax.net.au. It includes a detailed account of the carbon tax, and how it can impact the global effort to halt climate change. It also provides details of how it will affect you, including a handy link to the household compensation calculator.