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Low and middle income households are now guaranteed to receive tax cuts or rises in their payments following today's passage of the government's Clean Energy Future legislation by the Senate.
Federal Member for Fremantle, Melissa Parke, said the additional income would be provided to compensate for the expected modest impact on the price of some goods and services following the introduction of a carbon price on 1 July 2012.
Ms Parke said the assistance would ensure:
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4 million households would be better off as they would receive, on average, more in compensation than the expected price impacts.
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6 million households would receive, on average, enough assistance to fully cover the modest price impacts.
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More than 8 million households would receive some assistance towards covering any price impacts.
In the Fremantle electorate, more than 19,800 pensioners, more than 10,100 families and around 53,000 taxpayers are set to receive direct financial assistance either in the form of a tax cut or payment increase.
Ms Parke said the carbon price would only be paid by around 500 of Australia's biggest polluters, and that modelling – both independent and by federal Treasury – showed the expected flow-through impact on price rises would be less than one per cent.
"The passage of the government's Clean Energy Future legislation means we can now get on with the job of tackling climate change, and creating new clean energy jobs, while ensuring low and middle income households are not adversely impacted," said Ms Parke.
More information on the Government's Clean Energy Future Plan is available at
www.cleanenergyfuture.gov.au
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How the carbon price assists households and small business
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Pensioners and Self Funded Retirees (with Commonwealth Health Card)
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$338 for singles, and $255 for each member of a couple. Two-thirds of first annual year payment - $250 for individuals and $190 for each couple- to be paid in May/June 2012 as part of a Clean Energy Advance.
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Families with Children
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Families receiving Family Tax Benefit A will get up to an extra $110 per child. Eligible families will get up to an extra $69 in Family Tax Benefit Part B.
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Allowance Recipients
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Allowance increase of up to $218 extra for singles, $234 for single parents and $390 for couples combined.
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Tax payers earning less than $80,000
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All taxpayers earning less than $80,000 will receive a tax cut, with most receiving a cut of at least $300.
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Students and Job Seekers on Allowances
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Allowance increase of up to $218 for singles, and $195 for each member of a couple. Those in part time work, on low incomes, will also receive tax cuts.
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Low Income Earners (including self-funded retirees without a health card)
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Some low income households will be eligible for supplementary payment of up to $300.
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Small Business
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From 1 July 2012, the instant asset write-off will increase to $6,500 for small businesses.
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Tax cuts – what you will receive
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Annual Income
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Tax Cut
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Up to $18,200
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From 1 July 2012, any taxpayer earning less than $18,200 will no longer have to pay tax. This will assist around 1 million Australians, many who are women in part-time employment.
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$20,000
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$600
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$25,000
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$503
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$30,000
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$303
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$35,000
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$303
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