What is it?
A carbon tax is a tax on pollution; it places a fee on production, distribution or the use of fossil fuels based on how many carbons they emit. The Government then makes a price per tonne which becomes a tax on utilities such as electricity, natural gas, oil and petroleum. The aim is that a rise in price and tax on businesses and households will ease on the consumption of these utilities and therefore help protect the environment from further damage and global warming.
Australia
The Gillard government is proposing a carbon tax to begin in July 2012 and to run for three to five years before becoming a free trading emissions scheme.
How will this effect me?
Although the Gillard government have not come out and said what the set prices will be, there has been speculation by the coalition that Australian households could be paying more then $300 a year in electricity bills and an extra 6.5 cents a litre in petrol; $3 more then what we're currently paying. Greens leader Bob Brown claims that the tax will not hurt Australians hip pockets, telling channel 10: "Our job is to ensure that the average Australian household and car user is not punished by a carbon price. The idea is to make polluters pay." However, the Gillard government have said that the money from the tax will come come back as a form of compensation for low income earners and they will benefit from the tax scheme.
Why are people angry at Prime Minister Julia Gillard over this?
On the eve of the election Julia Gillard quite plainly stated: "I rule out a carbon tax." adding more fuel to the fire (pun intended) that Prime Minister Gillard is at the mercy of the Greens and Independents that helped her win the election. The tax hasn't passed through parliament yet and still may not become a tax, but people are already worried if it does pass, petrol prices and household bills will be so inflamed the cost of living will be almost unattainable. Time will tell.
