The Treasury has predicted about $24.5 billion will be generated from the Carbon Tax over the next three years. About $15.3 billion of the Carbon Tax revenue will be given back to workers as tax cuts, household energy efficiency measures and welfare payments.
According to the governments new model , the purpose of the Carbon Tax is to massively redistribute wealth from the middle classes and above to the poor. However, the government also intends to redistribute the money gained from tax payers to “poorer” countries.
Even when Julia Gillard was denying there would be a Carbon Tax last August, her government decided to spend $599 million on climate change handouts over the current three-year Budget period, mainly in the Pacific and South-East Asian regions. Approximately $470 million has already been allocated.
The revenue raised from the Carbon Tax was used to reduce income tax (by increasing the tax-free threshold) and increase pensions and welfare payments slightly to cover expected price increases, as well as introducing compensation for some affected industries. Some households deemed eligible will receive benefit from government hand outs to compensate the increase in prices. However, the tax cuts are capped. If your household earns an annual income of $150,000 or more, you will not to receive government assistance to combat price increases such as rising electricity prices.
Bjorn Lomborg, author of The Skeptical Environmentalist , argues that the government needs to invest more in innovation and make energy efficient sources affordable. Lomborg says: “If we want to do something about global warming, it’s not about trying to make fossil fuel so expensive nobody wants it – because that’s never going to happen. It’s about making green energy so cheap everyone wants it…it’s really about innovation into green energy technology.” See the video below for Lomborg’s interview with Lateline’s Tony Jones.
Why not give incentives to organisations, households and individuals for saving energy and reducing carbon, not penalise Australians by raising tax.
We say Reward! Not Penalise.