The Federal Government has moved to allay growing fears of the cost of the introduction of its carbon tax initiative, with Federal Minister for Climate Change and Energy Efficiency Greg Combet saying the effects on families will be modest.

 

“Treasury modelling shows that the introduction of a $23 carbon price will only have a 0.7 per cent impact on the CPI. Tax cuts and increases in pensions, allowances and family payments will assist almost six million households to meet their average price impact,” Mr Combet said.

 

Mr Combet said the tax will see over four million households benefit from an extra buffer with assistance that covers 120 per cent of the expected household impact of the tax.

 

The Federal Government also announced a suite of Budget initiatives regarding the tax, including:

 

  • $2.8 million in additional funding for a range of building energy efficiency activities, including maintenance and improvement of current building rating tools, information programs and regulatory schemes.
  • $37.1 million in funding over four years to introduce a nationally-consistent legislative framework to regulate the energy efficiency of equipment and appliances.
  • $3.0 million in funding in 2012-13 to support the development of climate change adaptation policy and risk analysis. Further funding will be determined based on the recommendations of the Productivity Commission’s report on adaptation due later this year.
  • The Tax Breaks for Green Buildings Program will no longer proceed with a saving of $405.2 million over the forward estimates.