Clean Energy Future: Modelling A Carbon Price, in Australia July 2011

Clean Energy Future Modelling Fact Sheet

I hear'd it wiv mine own liddle ears - Abbott was counting out loud again

Tones the Terrible Abbott was in full flight for the meeja yesterday and opined that a couple with one child under 4 years and a single annual income of $65,000 would be worse off under a carbon tax by the Gillard Government's own calculations.
He was reported in print for posterity; "Mr Abbott pointed to Government documents, featuring cameos of how changes will affect people, showing that a single income family on $65,000 with a child under five years is worse off."
What Tones didn't say was that after a Clean Energy income supplement once the carbon price kicks in, ongoing tax concessions and probably a lump-sum payment in mid 2012, this family would only be out of pocket $43 a year at most or 82 cents a week after March 2013.
The sky's falling!
Even Teh Oz was forced to point out the obvious "82 cents a week", but couldn't quite bring itself to say the words "less than the price of a cup of coffee".

Cartoon from laberal

Carbon Tax: Independent Retirees, Carers, Centrelink/Veterans Affairs pension recipients & the compensation package

Before all renting pensioners living on the NSW North Coast go into a state of shock on hearing the news that the Carbon Price Mechanism announced today will see electricity prices rise by an estimated 10% in 2013 above price rises already experienced in 2011-12; let me say that the fortnightly increase in the pension from March 2013 (as well as the one-off advance payment in May-June 2012) will be quarantined from the base pension and therefore should not be calculated in any rent increase if they are living in NSW Dept of Housing or community housing accommodation.

Earlier today the Labor Member for Page, Janelle Saffin, kindly clarified the fact that these new payments will not be included in the base pension.

This fortnightly increase will be indexed to the CPI once the carbon price is implemented.
The existing fortnightly Pension Supplement which includes the Utilities Allowance (covering electricity/gas/phone/internet subsidies) is already indexed.

According to www.cleanenergyfuture.gov.au on 10 July 2011:

Pension increases
Age pensioners will be eligible for household assistance that at least offsets all of their expected average price rises under a carbon price.
Age pensioners (including part-rate pensioners) will receive assistance equal to a 1.7 per cent increase in the maximum rate of pension. This is an annual increase of up to $338 for singles, and $255 for each member of a couple.
Assistance to pensioners will be automatic and will start before the carbon price starts, through an advance payment of $250 for singles, and $190 for each member of a couple paid in May-June 2012.
From March 2013, assistance will be delivered through extra fortnightly payments.
This assistance builds on the Government’s pension reforms which have seen the age pension increase by $128 per fortnight for single pensioners and $116 per fortnight for pensioner couples on the maximum rate, since September 2009.
Veterans will receive assistance through service pensions and other payments such as disability pensions and war widow/widower pensions.

Support for self-funded retirees
Self-funded retirees who hold a Commonwealth Seniors Health Card will receive the same amount of assistance as age pensioners.
This will be worth $338 for singles and $255 for each eligible member of a couple.
Self-funded retirees may also benefit from new tax cuts.
Combined with increases to the Senior Australians tax offset, a single person over 65 with taxable income of $35,000 will get tax cuts of $502 per year from 1 July 2012.
They would also receive an additional benefit thanks to an increase in the Medicare levy low-income threshold, providing an extra $160.

Support for aged care residents and providers
Arrangements will be introduced to ensure that assistance is shared fairly between aged care residents and providers.
Aged care providers bear many costs for their residents, including electricity, and will receive around half of the assistance paid through the age pension. Age pensioners living in aged care will receive the balance of the payment, to help them with increases in their other costs of living.

Disability Support Pension and Carer Payment increases
People who receive the Disability Support Pension or the Carer Payment will be eligible for household assistance that at least offsets the expected average price impact under a carbon price.
Pension payments will increase by an amount equal to 1.7 per cent of the maximum rate. This will be an increase of up to $338 for singles, and $255 for each member of a couple.
Assistance will be automatic and will start before the carbon price with an advance payment in May-June 2012 which will provide assistance to cover the first nine months of the carbon price. Fortnightly payments will increase from March 2013.

People with essential medical equipment needs
People holding a Commonwealth concession card who have high home energy costs because they rely on essential medical equipment will also be able to claim the Essential Medical Equipment Payment of $140 through Centrelink. This is in addition to their other assistance.
This extra payment is to ensure they do not incur extra costs for using their medical equipment under a carbon price.

Anyone else wanting information about how the new climate change policy will affect them can go to www.cleanenergyfuture.gov.au and Treasury economic modelling. Graph found at Peter Martin's blog.

I didn't sign up for this......

.....in the morning