Thursday, May 31, 2012

The carbon tax will cost how much?

Me on ABC Adelaide 891, Wednesday May 30

11 minutes, play or CLICK THEN CLICK AGAIN to download mp3



Summing up the Treasury modelling:



Some detail:


Table 1: Price impacts for a $23 carbon price in 2012‑13*
CPI subgroup
Contains
Average price impact
($ per week)
Price Impact (Per cent)
Dairy and related products
Milk
<0.10
0.4

Cheese

Ice cream and other dairy products
Bread and cereal products
Bread
<0.10
0.4

Cakes and biscuits

Breakfast cereals

Other cereal products
Meat and seafoods
Beef and veal
0.10
0.4

Lamb and mutton

Pork

Poultry

Bacon and ham

Other fresh and processed meat

Fish and other seafood
Fruit and vegetables
Fruit
0.10
0.4

Vegetables
Non‑alcoholic drinks and snack food
Soft drinks waters and juices
0.10
0.4

Snacks and confectionery
Meals out and takeaway foods
Restaurant meals
0.20
0.4

Takeaway and fast foods
Other food
Eggs
<0.10
0.4

Jams, honey and sandwich spreads

Tea, coffee and food drinks

Food additives and condiments

Fats and oils

Food  — not elsewhere classified
Alcoholic drinks
Beer
0.10
0.2

Wine

Spirits
Tobacco
Tobacco
<0.10
0.2
Men's clothing
Men's outerwear
<0.10
0.2

Men's underwear, nightwear and socks
Women's clothing
Women's outerwear
<0.10
0.2

Women's underwear nightwear and hosiery
Children's and infants' clothing
Children's and infants' clothing
<0.10
0.2
Footwear
Men's footwear
<0.10
0.2

Women's footwear

Children's footwear
Accessories and clothing services
Accessories
<0.10
0.4

Clothing services and shoe repair
Rents
Rents
0.40
0.6




Utilities
Electricity
4.60
7.9

Gas and other household fuels

Water and sewerage
Other housing
House purchase
0.90
0.6

Property rates and charges

House repairs and maintenance
Furniture and furnishings
Furniture
0.10
0.4

Floor and window coverings

Towels and linen
Household appliances utensils and tools
Major household appliances 
0.20
0.8

Small electric household appliances 

Glassware, tableware and household utensils

Tools
Household Supplies
Household cleaning agents
<0.10
0.3

Toiletries and personal care products

Other household supplies
Household Services
Childcare 
<0.10
0.3

Hairdressing and personal care services

Other household services
Health services
Hospital and medical services
0.10
0.3

Optical services

Dental services
Pharmaceuticals
Pharmaceuticals
<0.10
0.3
Private motoring
Motor vehicles
0.40
0.3

Automotive fuel

Motor vehicle repair and servicing

Motor vehicle parts and accessories

Other motoring charges
Urban transport fares
Urban transport fares
<0.10
0.5
Communication
Postal
0.20
0.5

Telecommunication
Audio, visual and computing
Audio, visual and computing equipment
<0.10
0.4

Audio, visual and computing media and services
Books, newspapers and magazines
Books
<0.10
0.3

Newspapers and magazines
Sport and other recreation
Sports and recreational equipment
0.20
0.3

Toys, games and hobbies

Sports participation

Pets, pet food and supplies

Pet services including veterinary

Other recreational activities
Holiday travel and accommodation
Domestic holiday travel and accommodation
0.30
0.5

Overseas holiday travel and accommodation
Education
Preschool and primary education
<0.10
0.3

Secondary education

Tertiary education
Insurance services
Insurance services
<0.10
0.3
Other
**
0.90
**
Total Expenditure

9.90
0.7
*Note: estimating the impact on household goods and services has been undertaken across broad product categories and the estimates represent the average price impact across each category. Within each category there will be a range of goods with different levels of direct and indirect emission intensity, for instance due to the source of the electricity used in the production of a particular company or for a particular type of good.
** The ‘other’ category is comprised of a range of household expenditures expected to increase in price by around a quarter of a per cent, which represents an average increase in prices for services across the general economy. Analysis of these products is difficult due to data limitations — many of these products are not included in the CPI basket of goods and services, for example — such that specific price increases cannot be determined. Examples of these products include life insurance premiums, fees for some financial services, gambling and outright purchases of dwellings.
Source:  Treasury



Carbon Price Claims - Guide for Business




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13 comments:

Anonymous said...

Stop using "facts" to distract from the "truth"...
drsusancalvin

Anonymous said...

Peter,
I have taken to carrying around our latest electricity account as it shows the total Green Gas Emissions generated. Even when I do the simple arithmetic to show people that our quarterly bill will go up by a mere $22(0.55%) they still won't believe that the sky is not going to fall in when the carbon tax starts. I can't understand why they would rather trust rhetoric spouted by a self interested politician rather than cold hard facts.

The Lorax said...

My bill shows my emissions as zero (I'm on 100% GreenPower) but I still have to pay the carbon tax. Why is that exactly? I foresee a mass exodus from GreenPower programs after July 1....

Peter Martin said...

Lorax, you don't have to pay the carbon tax!

The electricity generator pays it, and if it's emissions are zero it will pay zero.

Anonymous said...

Lorax
Where do you find the information that you have to pay the carbon tax on zero emissions? I've can't imagine anything so counter the spirit of the rationale for a carbon price.

Anonymous said...

Peter
Your post happened while I was typing mine. I feel better now (where have I heard that before?).

Peter Martin said...

I feel better now too.

Marek said...

am loving these abc radio interviews, hopefully there are many more to come!

The Lorax said...

Yes I will have to pay the carbon tax (indirectly) but I still pay it.

Google "greenpower carbon tax" to see what I mean. Here's one explanation

I asked our retailer specifically about the impact of the carbon tax on GreenPower buyers and here’s what they had to say:

“To provide GreenPower to its customers, [the retailer] must purchase renewable energy certificates in addition to the base electricity cost which does attract the carbon tax. The renewable energy certificate price is not expected to decrease immediately following the 1 July 2012 introduction of the carbon price but should in the medium to long-term. As a result, 100% GreenPower customers will still be affected by the introduction of a carbon price through its impact on the base electricity price.”

Peter Martin said...

Thanks.

Bizarre and interesting.

Anonymous said...

That's actually because the generator offsets emissions with either RECs or actually using renewable sources

Most providers simply buy RECs to offset the impact of their generation which is why the base electricity cost (which does generate emissions) attracts the carbon tax.

The Lorax said...

If Greenpower customers do see their bills rise, can I suggest the system is somewhat flawed, and will result in an exodus from Greenpower schemes.

I signed up for Greenpower six years ago in the hope it would encourage generators to source more power from renewables, but I've grown increasingly cynical. In the six years since I signed up Australia has embarked on a massive expansion of coal production that completely swamps any emission reductions from Greenpower schemes. Most disappointingly, much of the coal expansion has happened under a Labor government and has been loudly applauded by the left-leaning economic commentariat. Gittins being the prime offender.

So I ask, what the hell is the point? I am completely disillusioned.

wilful said...

My 1.5kw grid-connected PV system, at a not very good orientation and 38 degrees south, has delivered to my family a total power bill for the last twelve months of $58. that's it, in its entirety.

I think I can afford a $6 charge for carbon taxes!

We are not greenfreaks, we watch TV, use a dishwasher, computers etc. But it goes to show, it aint hard to be green.

This, of course, is teh intent of the carbon price - it's a PRICE SIGNAL. You're SUPPOSED to cut your electricity use.

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